Business
Amendment to High Arctic Credit Facilities
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FA...
About this update from High Arctic Energy Services Inc
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN\nTHE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY\nCONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/\n\n\nRED DEER, AB, Dec. 29 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO)\n("High Arctic" or the "Corporation") announced that its lenders have agreed to\ncertain amendments of its senior credit facilities. Under the terms of its\nrevolving credit facility dated June 6, 2008, the Corporation was required to\nraise net proceeds of $50 million from the sale of equipment by January 31,\n2009, of which $37.5 million was to be completed by November 30, 2008. The\nCorporation had successfully sold equipment for net proceeds of $29.2 million\nas at November 30, 2008, resulting in a shortfall of $8.3 million. The lenders\nhave agreed to extend the due dates for completion of the remaining mandatory\nasset sales to February 28, 2009 for the $8.3 million otherwise due on\nNovember 30, 2008 and to March 31, 2009 for the $12.5 million that was\notherwise due on January 31, 2009. High Arctic continues to focus its efforts\non selling assets and hopes to achieve asset sales in excess of the mandatory\nminimum, though the ability to meet the new timelines remains uncertain in\nlight of the current difficulties in the credit markets.\n\n\nAs part of the amendments, High Arctic agreed to pay down $4 million\nagainst the revolving credit facilities out of surplus cash on hand. The\nCorporation has approximately $17 million cash on hand following the $4\nmillion loan payment which should provide sufficient liquidity to meet its\nongoing business needs.\n\n\nThe amendment to the revolving credit facilities and the related\namendment to its bridge loan agreement will be filed on SEDAR (www.sedar.com).\n\n\nForward-Looking Statements\n\n\nThis news release may contain forward-looking statements relating to\nexpected future events and financial and operating results of the Corporation\nthat involve risks and uncertainties. Actual results may differ materially\nfrom management expectations as projected in such forward-looking statements\nfor a variety of reasons, including market and general economic conditions and\nthe risks and uncertainties detailed in the Corporation's Management\nDiscussion and Analysis for the year ended December...