Penn Virginia and certain of its subsidiaries have reached agreement on an amendment with the lenders under its reserve-based financing facility. According to an 8-K filing, Wells Fargo served as administrative agent for the transaction.

The reserve-based lenders (RBL) have agreed to push back the date that certain events of default will be triggered under the company’s reserve-based financing facility until April 12, 2016, subject to a possible further extension to May 10, 2016.

Also, an ad hoc committee of the company’s senior unsecured noteholders, which represents more than 50% in amount of the company’s senior unsecured notes, supports the credit amendment. Penn Virginia intends to use the additional time to continue discussions with its creditors, including the RBL lenders, the noteholder committee and some of its major contractual counterparties with the objective of reaching agreement on a comprehensive debt restructuring.

“This is an encouraging development for Penn Virginia and marks an important step forward as we continue to work toward a comprehensive debt restructuring,” said Edward B. Cloues, II, chairman and interim CEO. “We remain optimistic that ongoing engagement with our creditors and their representatives will yield a positive result for the company, allowing us to strengthen our balance sheet, resume our recently-paused drilling and completion operations and leverage our assets and employee base so we remain competitive in a challenging industry environment.”

Jefferies is acting as the company’s financial advisor, Alvarez & Marsal is acting as restructuring advisor, and Kirkland & Ellis is acting as the company’s legal counsel in connection with the debt restructuring. PJT Partners is acting as the noteholder committee’s financial advisor and Milbank, Tweed, Hadley & McCloy is acting as the noteholder committee’s legal counsel.

Penn Virginia Corporation is an independent oil and gas company engaged in the exploration, development and production of oil, NGLs and natural gas in various domestic onshore regions of the U.S.