Glacier Oil & Gas: IIIQ 2021 Update

We’ve written about moribund Glacier Oil & Gas before on two occasions. Most recently, we noted that at the end of the IQ 2021 the FMV of the $67mn invested was worth only $8.1mn, according to Apollo Investment (AINV). $36.9mn of the exposure was in first lien debt that has been on non accrual since IQ 2020.

With the publication of AINV’s IIIQ 2021 results, we learn that the BDC booked a ($20.9mn) realized loss on Glacier, bringing the nominal cost to $45.1mn. The FMV is now just $4.9mn. Despite the increase in the price of oil, this seems like an almost certain complete loss for AINV.

With no income coming in and – apparently – little chance of any material recovery this investment is becoming increasingly non material, by dints of realized and unrealized losses, to AINV and may be dropped from coverage shortly.

For the moment, Glacier remains rated CCR 5. We’re not sure if the investment will be “Trending” in the IVQ 2021 results.