extension to July 11.. I am surprised (in a bad way) at how hard it has been to sell their business or equipment in what seems a very good energy market, and also that they have been unable to find any other financing.... no money out there for them, but why are other companies I follow not in this situation? I assume the assets here are not as good as the analysts thought.
Calmena Announces Borrowing Update
Monday, June 30, 2014
Calmena Announces Borrowing Update
08:30 EDT Monday, June 30, 2014
CALGARY, ALBERTA--(Marketwired - June 30, 2014) - Calmena Energy Services Inc. (TSX:CEZ) ("Calmena" or the "Company") announces an update on the status of its senior credit facilities ("Credit Facilities").
On October 29, 2013 Calmena and its senior lender (the "Senior Lender") entered into an agreement whereby the Senior Lender agreed to forbear from demanding payment or enforcing security with respect to amounts owing by Calmena under its credit facilities ("Credit Facilities") with the Senior Lender on certain terms. On March 31, 2014, Calmena and the Senior Lender entered into an extension agreement (the "Extension") pursuant to which the Senior Lender agreed to continue to forbear from demanding payment or enforcing its security under the Credit Facilities until June 30, 2014 (the "Deadline"). The Extension also provided that the Company was required, on or before April 30, 2014, to have either paid $9.0 million as a permanent reduction under the Credit Facilities or to have entered into one or more binding transactions to sell assets allowing the Company to fund the required $9.0 million reduction by May 31, 2014. This funding requirement was met by Calmena on May 15, 2014.
Calmena and the Senior Lender have agreed to an interim extension of the Deadline to July 11, 2014 to enable continued discussions with respect to a longer extension of the Deadline.
ABOUT CALMENA ENERGY SERVICES INC.
Calmena is a diversified energy services company that provides contract drilling and directional drilling services to its customers operating in the United States, Latin America and the Middle East and North Africa. The common shares of Calmena trade on the Toronto Stock Exchange under the symbol "CEZ".
FORWARD-LOOKING STATEMENTS