Argo Petroleum is in default on a loan.
Hit by declining oil prices, the Santa Monica-based oil producer said it was notified by Continental Illinois National Bank & Trust that it was in default for failing to pay interest on $38 million in loans outstanding under a secured revolving credit agreement. Argo said the Chicago bank didn’t indicate whether it plans to seize collateral or call the notes in, but it gave the firm 30 days to avoid default on other terms of the loans. Cecil O. Basenberg, Argo’s president, said the company is trying to restructure all of its debt.
For the record:
12:00 a.m. March 17, 1986 FOR THE RECORD
Los Angeles Times Monday March 17, 1986 Home Edition Business Part 4 Page 2 Column 6 Financial Desk 2 inches; 36 words Type of Material: Correction
Argo Petroleum of Santa Monica said it defaulted on interest payments on $25 million in 16.5% subordinated debentures, not on the interest payments on $38 million outstanding under its secured revolving credit agreement as reported in Thursday’s editions.
