Hi cyesp. ENT postponed the CC today.
Enterra Energy Trust Announces Cancellation of Third Quarter Conference Call and Advises That It's in Discussions Regarding Extension of Second Lien Borrowing Facility
Tuesday November 20, 9:30 pm ET
CALGARY, ALBERTA--(MARKET WIRE)--Nov 20, 2007 -- Enterra Energy Trust ("Enterra" or the "Trust") (Toronto:ENT-UN.TO - News)(NYSE:ENT - News) announces that it is in discussions regarding the extension of the maturity of its second lien, non-revolving Cdn. $40 million borrowing facility (the "Second Lien Facility").
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A Special Committee of the board of directors of Enterra is in discussions with both the holder of the Second Lien Facility, as well as the syndicate of lending institutions holding the Trust's first lien facilities, to review the overall indebtedness of the Trust and to seek a restructuring of the Trust's indebtedness that is in the best interests of the unitholders of Enterra. The Special Committee has retained Peters & Co. Limited and Osler, Hoskin & Harcourt LLP to assist it in this regard.
Enterra also announces that the third quarter conference call scheduled for Wednesday, November 21, 2007, has been cancelled.
biz.yahoo.com
That's bad news and good news, I think mostly good -- with ENT one can never be sure.
The bad news is that ENT management disappoints one more time, and at first glance they seem to be operating like the Keystone Cops.
The good news is that they seem to be negotiating hard to extend the second lien loan and avoid completing the assets sales (the bids were not binding). This is good, because those assets were put up for sale in a fire sale environment, and they are oily, and oil has jumped some $15 since the bidding closed.
If the negotiations succeed, ENT will be in a better position than if they sold the assets and paid off the second lien loan immediately. It appears that they expected to close the deal by yesterday and they failed. The involvement of the law firms is an indication that these are hardball negotiations. |
