CALGARY, ALBERTA--(Marketwired - Nov. 28, 2013) - Tuscany International Drilling Inc.
(TSX:TID)(COLOMBIA:TIDC) ("Tuscany" or the "Company") announces that it has entered into an amending agreement (the "Amending Agreement") to its US $255,000,000 senior secured guaranteed credit agreement with Credit Suisse AG, Cayman Islands Branch, as administrative agent (the "Agent") and various lenders thereto (the "Credit Agreement").
The Amending Agreement will allow the Company to make withdrawals from its debt service reserve account in accordance with the terms of the Credit Agreement, as amended by the Amending Agreement, up until January 2, 2014, or such other date as may be agreed to by the Agent and a required majority of lenders under the Credit Agreement. The proceeds from withdrawals from the debt service reserve account will be used to finance operating expenses, specified capital expenditures, restructuring costs and general corporate purposes and to pay fees and expenses related to the Amending Agreement.
The Amending Agreement provides for other material amendments to the Credit Agreement. In accordance with the terms of the Amending Agreement, the Company will be obligated to market certain undeployed assets, make mandatory repayments to the Agent upon the disposition of its assets and to deliver a restructuring plan to the Agent and the lenders. The Amending Agreement also requires the Company to report to the Agent and the lenders on its projected cash receipts and operating and capital expenditures and to ensure that actual receipts and expenditures are in accordance with such projections.
In order to satisfy the conditions associated with the Amending Agreement, the Company has engaged Mr. Deryck Helkaa of FTI Consulting Canada Inc. ("FTI") as chief restructuring officer of the Company (the "CRO"). Mr. Helkaa is a senior managing director with FTI, a global business advisory and consulting firm, and has been retained to further assist the Company with its review of strategic alternatives that was previously announced on April 8, 2013. Mr. Helkaa shall report directly to the Special Committee of the Board of Directors of the Company and shall be responsible, in consultation with the Special Committee and the management of the Company, for proposing actions reasonably necessary to successfully restructure the assets and liabilities of the Company.
There can be no assurance that any transaction will occur as part of the review of strategic alternatives and there is no defined timeline for the strategic review. The Company does not intend to comment further regarding the appointment of Mr. Helkaa as CRO or the strategic review until such time, if any, as Tuscany determines that disclosure is appropriate or required.
About Tuscany
Tuscany, a corporation headquartered in Calgary, Alberta, is engaged in the business of providing contract drilling and work‐over services along with equipment rentals to the oil and gas industry. Tuscany is currently focused on providing services to oil and natural gas operators in South America and Africa. Tuscany has operating centers in Colombia, Brazil, Ecuador and France.
READER ADVISORIES
Statements in this news release contain forward-looking information including, without limitation, statements with respect to strategic alternatives, the restructuring of the assets and liabilities of the Company and the future financial position of the Company. Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Tuscany. These risks include, but are not limited to: counterparty completion risks, regulatory approval risk, the risks associated with the oil and gas industry, commodity prices and exchange rate changes, regulatory changes, successful exploitation and integration of technology, customer acceptance of technology, changes in drilling activity and general global economic, political and business conditions. Industry related risks could include, but are not limited to; operational risks, delays or changes in plans, health and safety risks and the uncertainty of estimates and projections of costs and expenses and access to capital. The risks outlined above should not be construed as exhaustive. The reader is cautioned not to place undue reliance on this forward-looking information. Tuscany does not undertake any obligation to update or revise any forward-looking statements except as expressly required by applicable securities laws.
The listing of Tuscany's common shares on the Colombian Stock Exchange does not imply a certification by the BVC of the value or the solvency of Tuscany.
The Toronto Stock Exchange has not reviewed, nor does it accept responsibility for the adequacy or accuracy of this release.