Regarding interest repayment on senior notes,,
HOUSTON, July 15 /PRNewswire/ -- Eagle Geophysical, Inc. (Nasdaq: EGEO - news) has announced today that it did not make the semi-annual interest payment of $5,375,000 due today on its $100 million 10 3/4% Senior Notes due 2008. Under the indenture governing these notes, Eagle has a 60 day grace period in which to make this interest payment.
EGEO has definitely fallen on hard times but I dont think they're finished yet,, as of March 31st EGEO had $6,738,000 in cash and $5,000,000 in restricted cash (not sure about the details of the restriction).......I'm sure EGEO would like to negotiate some sort of restructuring on the senior notes but I dont think bankruptcy is imminent given the company's current cash position and today's news which demonstrates EGEO is capable of obtaining needed financing.
HOUSTON, July 22 /PRNewswire/ -- Eagle Geophysical, Inc. (Nasdaq: EGEO - news) announced today that it has completed a term financing with Heller Financial, Inc. (NYSE: HF - news). The $12.5 million facility is for seven years at a rate of 10.25%. The financing was used to fund a portion of the equipment on the recently commissioned Atlantic Horizon and has provided the Company with approximately $4.5 million of additional working capital. The Atlantic Horizon began working in late April of this year and is presently on proprietary contracts in the North Sea.
I'd say they can at least wing-it for another year.....in that time hopefully one of 2 things will happen (a) oil prices continue to rise strengthening the domestic oil business which will hopefully benifiting EGEO or (b) EGEO is acquired or merges with a larger oil drilling firm.
CP
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