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Sunday, June 12, 2016 5:03:23 PM
COMPANY IS INSOLVENT AND TRYING TO RESTRUCTURE ITS DEBT
Only FACTS that matter
The fourth default extension has now expired.
Could be looking at a bankruptcy filing any day.
There goes the common share value if that happens.
On May 17, 2016, the Borrowers and the existing Lenders entered into an agreement dated as of May 2, 2016 (the “Fourth Extension Agreement”) to extend each of the forbearance date and maturity date from May 2, 2016 to June 3, 2016, subject to an earlier date in the discretion of the Lenders in the event that the Lenders receive notice that the credit facility with any new lender will not be completed as currently contemplated. There can be no assurance that the new credit facility will be completed in a timely manner, or at all, or that the existing Lenders will give further extensions of the forbearance and maturity dates beyond June 3, 2016.
Further, the Borrowers acknowledged that the Lenders have or will engage a consultant, at Borrowers’ expense, to analyze and provide a valuation of the Borrowers’ various assets.
In addition, the agreement provides that on the earlier of May 30, 2016 or the date that any prospective lender for the new credit facility informs the Borrowers that such lender does not intend to consummate the financings, the Borrowers will, at the lenders’ request, engage a chief restructuring officer (a “CRO”). The Lenders will recommend three candidates to be the CRO (with one of which being GRL Capital Advisors) and Borrowers shall choose one of such candidates.
The foregoing summary of the Forbearance Agreement and Fifth Amendment to Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the Forbearance Agreement and Fifth Amendment, a copy of which is filed as Exhibit 10.14.6 to the Company’s Annual Report on Form 10-K filed with the SEC on December 11, 2015.
Only FACTS that matter
The fourth default extension has now expired.
Could be looking at a bankruptcy filing any day.
There goes the common share value if that happens.
On May 17, 2016, the Borrowers and the existing Lenders entered into an agreement dated as of May 2, 2016 (the “Fourth Extension Agreement”) to extend each of the forbearance date and maturity date from May 2, 2016 to June 3, 2016, subject to an earlier date in the discretion of the Lenders in the event that the Lenders receive notice that the credit facility with any new lender will not be completed as currently contemplated. There can be no assurance that the new credit facility will be completed in a timely manner, or at all, or that the existing Lenders will give further extensions of the forbearance and maturity dates beyond June 3, 2016.
Further, the Borrowers acknowledged that the Lenders have or will engage a consultant, at Borrowers’ expense, to analyze and provide a valuation of the Borrowers’ various assets.
In addition, the agreement provides that on the earlier of May 30, 2016 or the date that any prospective lender for the new credit facility informs the Borrowers that such lender does not intend to consummate the financings, the Borrowers will, at the lenders’ request, engage a chief restructuring officer (a “CRO”). The Lenders will recommend three candidates to be the CRO (with one of which being GRL Capital Advisors) and Borrowers shall choose one of such candidates.
The foregoing summary of the Forbearance Agreement and Fifth Amendment to Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the Forbearance Agreement and Fifth Amendment, a copy of which is filed as Exhibit 10.14.6 to the Company’s Annual Report on Form 10-K filed with the SEC on December 11, 2015.
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