Business
Western Energy Services Corp. releases year end 2009 financial and operating results
Western Energy Services Corp. releases year end 2009 financial and operating results
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, Apr. 23, 2010 (Canada NewsWire Group) -- /CNW/ -- Western Energy Services Corp. (\"Western\" or the \"Company\") (TSX Venture: WRG) is pleased to release its year end 2009 financial and operating results. Additional information relating to the Company, including the Company's financial statements and management's discussion and analysis for the year ended December 31, 2009 will be available on SEDAR at www.sedar.com.Comprehensive revaluationOn December 22, 2009, the Company completed a recapitalization and reorganization involving a non-brokered private placement of $7.0 million, the conversion of the Company's existing bridge lending facility, subordinated convertible debentures (including the cancellation of the related common share purchase warrants) and other specified obligations into common shares of Western Energy Services Corp., and the appointment of a new board of directors and a new management team. This transaction resulted in a realignment of Western's equity and non-equity interests. Prior to the recapitalization, the Company faced the prospect of being unable to meet obligations to creditors due to its deteriorating financial position. The outcome of the recapitalization and reorganization was a significant de-leveraging of Western's balance sheet. Total debt was reduced to approximately $0.2 million, and Western is in a significantly better position to meet current and future market challenges.As a result of the realignment of equity and non-equity interests, Western's identifiable assets and liabilities were recorded at a new cost basis, being the fair value, as required under Canadian Institute of Chartered Accountants Handbook Section 1625 - \"Comprehensive Revaluation of Assets and Liabilities\". The process of undertaking such a comprehensive revaluation is commonly referred to as \"fresh start accounting\". The recapitalization and reorganization is described in Note 2 of our audited consolidated financial statements for the period ended December 31, 2009 as filed on SEDAR at www.sedar.com.OutlookSubsequent to the recapitalization and reorganization completed on December 22, 2009, as discussed above, the following significant events have occurred:- On February 24, 2010, Western announced that due to the significantdownturn in industry demand, Western has ceased operations in theUnited State...