Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers N > Headlines for NUI Corp. > News item |
NUI needs sale of company, extension of loans, additional financing to avoid liquidity problems in fall
By Sara Rosenberg
New York, May 20 - NUI Corp. and NUI Utilities are facing a potential liquidity problem after Sept. 30 and are looking to complete the sale of the company, extend their credit facilities beyond the current due date of Nov. 22 and get additional financing to be able to meet gas purchase prepayment requirements under its contract with Cinergy & Trading LP, according to a 10-Q filed with the Securities and Exchange Commission on Thursday.
"If the company is unsuccessful in its efforts to effectively resolve its liquidity concerns, it may need to reorganize its operations and restructure its credit and debt financing," the filing added.
The issues that are anticipated to cause the liquidity crunch include revolver terminations, the need to prepay an interest reserve account for the benefit of the lenders under NUI's credit agreement in the amount of about $20 million by Nov. 22 and, as was mentioned above, the need to prepay Cinergy.
NUI and NUI Utilities each have separate revolvers totaling $405 million. Each revolver may only be extended for 364 days under certain conditions.
NUI is a Bedminster, N.J., diversified energy 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.