Allis-Chalmers to continue paying down revolving facility borrowings to improve liquidity

By Sara Rosenberg

New York, May 6 - Allis-Chalmers Energy Inc. plans on continuing to reduce the balance under its revolving credit facility in its efforts to improve liquidity, company officials said in a conference call on Wednesday.

Other liquidity initiatives that are being focused on include reducing capital expenditures, reducing inventory, continuing with an aggressive cost management program and having an active management program.

At Dec. 31, the company had $36.5 million outstanding under its revolver. At March 31, that amount increased to $42.5 million. However, since the end of the first quarter, the company has paid down the revolver to $37 million, officials said in the call.

The company also had $9 million in cash and $5.1 million in letter of credit, down from $5.8 million at year-end.

Availability under the revolver is currently around $47.9 million, which is up slightly from the end of 2008, officials added.

Allis-Chalmers Houston-based multi-faceted oilfield services company.

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