High Arctic fails to meet credit facility's asset sale requirement

By Sara Rosenberg

New York, Dec. 1 - High Arctic Energy Services Inc. has not completed the mandatory asset sale requirements under its senior credit facility and is in active discussions with its lenders to develop a plan to address the situation, according to a news release.

Under the terms of the company's revolver, it had until Nov. 30 to raise net proceeds of C$37.5 million from the sale of equipment and until Jan. 31, 2009 to raise an additional C$12.5 million.

The company has successfully sold equipment for net proceeds of C$28.9 million, resulting in a shortfall of C$8.6 million as of Nov. 30.

As part of the discussions with lenders, the company is hoping to negotiate a reasonable time frame to complete sales.

High Arctic is a Red Deer, Alta.-based provider of specialized oilfield equipment and services.

© 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.