Lightstream Resources Ltd. LSTMF

RE:Lightstream Provides Update

[orlandofl]

JohnDD wrote:
June 14, 2016

Lightstream Provides Update on Second Lien Note Interest Payment and Extension of Annual Meeting Date

CALGARY, ALBERTA--(Marketwired - June 14, 2016) - Lightstream Resources Ltd. (the "Company" or "Lightstream") (TSX:LTS) announces that we have chosen to defer our US$32.1 million semi-annual interest payment due June 15, 2016 in respect to our outstanding 9.875% second lien notes ("Secured Notes"). Pursuant to the indenture governing the Secured Notes, we have until July 15, 2016 (30 days) to make the interest payment before an event of default occurs. In addition, we are postponing our Annual General Meeting and we now intend to hold the meeting on or before August 31, 2016.

As previously disclosed, we are focused on our liquidity situation and have been engaged in discussions with the holders of a majority of the aggregate principal amount of Secured Notes as well as certain holders of our 8.625% unsecured notes ("Unsecured Notes"), regarding a possible restructuring of the Secured Notes and Unsecured Notes, including a conversion of this debt to equity. We are also continuing to pursue asset sales to address our balance sheet and liquidity position. In addition, we remain in discussions with our syndicate of lenders under our secured term credit facility regarding the restructuring and other strategic efforts.

The Company has cash on hand, currently in excess of $20 million, and monthly oil and gas sales revenue which averaged $24 million per month for the previous two months. We are continuing to pay all service providers, suppliers and contractors in the normal course of business as we pursue our strategic balance sheet initiatives.

With a view to reducing the expense and inconvenience to shareholders associated with holding two separate meetings, Lightstream sought and received an extension from the TSX to postpone our Annual General Meeting to as late as August 31, 2016 in order to accommodate any shareholder vote required for a potential strategic transaction. We will issue a press release when the record date and meeting date have been determined.

Lightstream Resources Ltd. is an oil and gas exploration and production company focused on light oil in the Bakken and Cardium resource plays. We are committed to delivering industry leading operating netbacks, strong cash flows and consistent operating results through leading edge technology applied to a multi-year inventory of existing and emerging resource play opportunities. Our long-term strategy is to efficiently develop our assets and deliver an attractive dividend yield.

maybe they would make the bonds convertible, but the price is too low right now to do that.  I think there best course of action would be to offer bonds and issue stock options as a part of the deal and see if they can get a defered interest payment or a lower coupon.  They are going to have to dilute the shares if they go the way of debt - at least I think that is a way to get a deal done - take debt and incent the new debt by offering stock options with considerable upside.  The other option is to sell some assets.  I think they should be able to get some kind of deal done.