Lightstream to defer interest payment on 9 7/8% second-lien notes

By Wendy Van Sickle

Columbus, Ohio, June 14 – Lightstream Resources Ltd. said it will defer the $32.1 million semi-annual interest payment due Wednesday on its 9 7/8% second-lien secured notes.

Under the notes’ indenture, Lightstream has until July 15 to make the interest payment before an event of default occurs, according to a company announcement.

The company said it is focused on its liquidity situation and has been engaged in discussions with the holders of a majority of the principal amount of the notes as well as certain holders of its 8 5/8% unsecured notes, regarding a possible restructuring of both issues, 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 release states.

Lightstream said it has in excess of C$20 million of cash on hand and its monthly oil and gas sales revenue 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,” the company said.

Lightstream is an oil and gas exploration and production company based in Calgary, Alta.

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