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| Home : Arsenal Energy Inc. Announces Amended Loan Agreement |
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Jun 03
2016 |
Arsenal Energy Inc. Announces Amended Loan Agreement |
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CALGARY, ALBERTA--(Marketwired - June 2, 2016) - Arsenal Energy Inc. ("Arsenal" or the "Company") (TSX:AEI)(OTCQX:AEYIF) announces that the Company has entered into an amending agreement ("Amending Agreement") with its syndicate of bankers. Under the Amending Agreement, the Company's borrowing base has been redetermined at $6.0 million. The Company estimates its current bank borrowings at approximately $9.3 million. Under the terms of the Amending Agreement, the Company has until June 30, 2016 to cure the shortfall. The Amending Agreement requires the Company to repay all outstanding bank borrowings by August 31, 2016. The Company has entered into Letters of Intent to sell 450 boe/d of Canadian production for total proceeds of $12.0 million with closings expected to occur on or before June 30, 2016. The Company intends to use the proceeds from the sales to reduce and repay the Company's outstanding bank debt. In order to satisfy the conditions associated with the Amending Agreement, the Company has engaged a Chief Restructuring Officer ("CRO"). The CRO will report to the Company's Board of Directors and aid the Company in fulfilling its repayment obligations under the terms of the Amending Agreement. |
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| Source:http://www.marketwired.com/mw/release.do?id=2131035&sourceType=3 |
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