Intrepid Potash reached an agreement with its lender group to reduce its credit facility and extend the covenants until June 30, 2016. According to an 8-K filing, U.S. Bank served as administrative agent.

Bob Jornayvaz, Intrepid’s executive chairman, president and CEO, said at the company’s quarterly meeting, “We reached an agreement with the lenders for our credit facility to extend until no later than July 31, 2016, the previous waiver of the requirements under the facility to meet quarterly financial covenants and to deliver 2015 financial statements without a going concern modification. While this agreement further reduces the amount under the facility, it provides us with the time to thoughtfully continue our negotiations with the noteholders.

In addition, we are performing due diligence surrounding an alternative credit facility proposal we have received. Our noteholders have also agreed to waive until June 30, 2016, the financial covenants under the notes. We continue to work with our lenders towards a mutually agreeable long-term solution to our debt covenant issues.”

Intrepid also announced a plan to idle mining operations at its West facility, which is a conventional mining facility located in Carlsbad, NM. The facility, which generated 42% of Intrepid’s potash production in 2015, is expected to transition to care and maintenance in July.

Intrepid Potash produces muriate of potash and supplied approximately 9% of the country’s annual consumption in 2015. Potash is applied as an essential nutrient for healthy crop development, utilized in several industrial applications and is an ingredient in animal feed.