Ultra Petroleum Corp. has announced on March 1 that its wholly-owned subsidiary Ultra Resources, Inc. has entered into an agreement and waiver with its lenders.

The Yahoo! news states that "the waiver and amendment agreements provide the Company with an opportunity to continue discussions with its creditors about restructuring all of its debt burdens, including the senior notes issued by the Company."

The waiver and amendment agreements also results in the postponement and deference of the March 1, 2016 maturity and interest payments arising under the Ultra Resources' senior notes. It also "waives other defaults that fall under the Ultra Resources' debt agreements between March 1, 2016 and April 30, 2016. This, however, would mean that earlier termination would occur on the waivers, based on terms and conditions specified in the waiver and amendment agreements.

The company's downfull was due to economic turbulence and the stagnant state of the oil prices, among others. Before it hit rockbottom, it was considered to be the investors' favorite.

If the agreements didn't happen, it could be that the independent oil and gas company may have filed for a Chapter 11 bankruptcy protection already. The company earlier did a 10-K filing. This filing clearly spells out the financial covenants as well as the specific dates in which these covenants will be labelled as breached.

At present, the company has at least $266 million in cash. This cash, unfortunately, is not enough to cover its debts amounting to $3.76 billion.

Ultra Resources borrowings include the following:

• $999 million under the credit agreement (JPMorgan Chase is the administrative agent). Ultra Resources' obligations under the credit agreement are guaranteed by Ultra Petroleum and UP Energy Corporation.
• $1.46 billion in unsecured senior notes issued by Ultra Resources. Ultra Resources' obligations under these Senior Notes are also guaranteed by Ultra Petroleum and UP Energy Corporation.

Meanwhile, as a result of these agreements, the shares of the company skyrocketed by three-quarters.