south belridge1

Kern County's South Belridge Oil Field is among the most productive in California.

A large local oil producer has won a deadline extension from its creditors that allows it to avoid filing for bankruptcy protection after it was unable twice recently to make scheduled interest payments totaling tens of millions of dollars.

Santa Clarita-based California Resources Corp., a major employer and payer of property taxes in Kern County, announced Monday it now has until 8:59 p.m local time on June 30 to pay lenders money that was due May 29 but which had been delayed until Sunday night.

Its failure to make the payments or otherwise reach a new deal by 8:59 p.m. Sunday could have forced the company to seek bankruptcy protection. But the extension agreement gives CRC about two weeks to work out a new arrangement that could put the company on firmer financial ground.

CRC still owes several billion dollars left from its 2014 spinoff from Occidental Petroleum Corp. It's been trying to restructure its debt after the cancellation of a March deal that would have let it rework the debt.

Facing low oil prices during the pandemic, CRC has already shut in oil production, cut paid hours for its local workforce and slashed capital investments.

The extension agreements posted Monday were between CRC and lenders including JPMorgan Chase Bank N.A. and the Bank of New York Mellon Trust Co. N.A.

Recommended for you

(1) comment

Masked 2020

please please please stop using these looks like a alien landscape from another plant not Mother Earth... pretty sure this isn't a view from the Oil Barron's back I have to go outside in the middle of Trump's pandemic and Hug a Tree

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.