Gasco defaults on 5.5% convertibles; options could include bankruptcy

By Caroline Salls

Pittsburgh, May 13 - Gasco Energy, Inc. said there is substantial doubt about its ability to continue as a going concern as it continues to evaluate the strategic alternatives for its assets and evaluate various options to address liquidity constraints, according to a news release.

In addition, Gasco said it is in default on its 5.5% convertible senior notes due 2015 because it did not make a required interest payment within 30 days of the due date.

The company said an involuntary bankruptcy petition could be filed against it in connection with the payment default.

The company said strategic alternatives related to the liquidity constraints could include a pre-packaged or other type of Chapter 11 bankruptcy filing.

Gasco said financial adviser Stephens, Inc. is assisting with the sale evaluation process. The sale options include a sale of the company or all of its assets.

According to the release, Gasco has been looking to restructure or refinance its debt or to sell some or all of its assets to improve its liquidity position since mid-year 2012.

Management change

In a separate news release, the company announced that W. King Grant has resigned from his positions as president and chief executive officer and a member of the board of directors.

Specifically, Grant's resignation from the board took effect on May 10 and his resignation from his role as president and CEO at the close of business on May 13.

The board has appointed Richard S. Langdon as interim CEO, effective May 14. Langdon has served as an independent Gasco director since March 2003 and will continue to serve as a director.

Langdon is chairman of the board of directors of Constellation Energy Partners LLC. He holds a B.S. in mechanical engineering and an M.B.A. from the University of Texas at Austin.

Gasco is a Denver-based natural gas and petroleum exploitation, development and production company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.