The clock is ticking on when we start to hear of some big firms going pop
Two large US energy firms missed interest payments on $7.6bn in loans and have been given until next month to settle up, reports Bloomies.
Energy XXI Ltd and SandRidge Energy Inc failed to pay interest of $21.7m and $8.8m respectively last week and the news is going to increase default fears further.
Although default fear rise on such headlines it can be a tactic that firms use to renegotiate terms of loans but it's a dangerous game of chicken.
The industry is gearing up for April and the redetermination season and that's when things could really start coming to a head. Yesterday Chesapeake said they hoping to pass through it unscathed.
In the cycle of booms and busts we're still a long way from the bottom. Once we hear the popping sounds the vultures will be out in force. That will be the real time to think about oil and commodity longs.
