Crusader Energy Group Inc (KRU)

[investorguy]

I hope you sold this morning, news out made it drop 25%. Im looking at it as a bounce play, grabbed a few at .16.

Crusader Energy Announces Update on Continued Discussions of Strategic Alternatives
Mar 26, 2009 2:35:00 PM
OKLAHOMA CITY, March 26 /PRNewswire-

FirstCall/ -- Crusader Energy Group Inc. (Amex: KRU) today announced that in connection with the Company's continued evaluation and assessment of financial and strategic alternatives to address its previously announced $5 million borrowing base deficiency under its senior credit facility, the Company elected not to pay the approximately $833,000 first installment on the repayment of the borrowing base deficiency that was due on March 25, 2009. As previously reported the Company had notified the lenders under the senior credit facility that it had elected to repay the borrowing base deficiency through six equal monthly installments, with the first installment due March 25, 2009. The Company's election not to pay the installment due on March 25, 2009 results in an event of default under the Company's senior credit facility, and the administrative agent under the Company's senior credit facility could elect to declare all amounts outstanding under the senior credit facility to be immediately due and payable. In addition, an event of default under the senior credit facility results in an event of default under the Company's second lien credit facility, and the administrative agent under the second lien credit facility (subject to certain intercreditor agreement provisions) could elect to declare all amounts outstanding under the second lien credit facility to be immediately due and payable. If the lenders under either credit facility accelerate such indebtedness, the Company does not have sufficient funds currently available to repay such indebtedness. The Company remains in discussions with the lenders under both its senior credit facility and its second lien credit facility regarding potential solutions to address the borrowing base deficiency and default, as well as with other third parties regarding potential strategic alternatives (which may include restructuring the Company's debt, the sale of some or all of the Company's assets or a merger or other business combination involving the Company). The Company may be required to seek protection under Chapter 11 of the United States Bankruptcy Code if such efforts are not successful or to effect any strategic alternative that it elects to pursue.