Business
Update on 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\nIN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION\nMAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/\n\n\nRED DEER, AB, April 1 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO)\n("High Arctic" or the "Corporation") updated the status of its credit\nfacilities. As previously indicated, the Corporation confirms that, as at\nMarch 31, 2009, it had not met certain asset sale requirements under its\nrevolving credit facility or repaid the $20-million multi-draw bridge loan\nfacility (the "Bridge Loan").\n\n\nThe Corporation is working with its lenders for extensions to both the\nBridge Loan and the revolving credit facilities and currently has no reason to\nbelieve that it will not be successful.\n\n\nUnder the current loan arrangements, the $20-million Bridge Loan and\nassociated fees were due on March 31, 2009. In addition, the Corporation has\nnot completed the mandatory asset sale requirements. 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. An extension agreement dated December 26, 2008 and a waiver dated March\n18, 2009 allowed the Corporation until March 31, 2009 to complete the required\nasset sales. As at March 31, 2009, the Corporation had completed asset sales\nof $30.8 million.\n\n\nThe Corporation will provide additional information as it becomes\navailable, including the terms of any extension.\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 31, 2008 and in High\nArctic's Annual Information Form for the year ended December 31, 2008, all\nfound on SEDAR (www.sedar.com). Due to the potential impact of these factors,\nthe Corporation disclaims any intention or obligation to upd...