Benz secures $11.2-million long-term financing
Benz Energy Inc BZG
Shares issued 35,069,224 Aug 25 close $0.27
Thu 26 Aug 99 News Release
Mr. Robert Herlin reports
Benz Energy has reached an agreement with certain vendors and suppliers to
convert its past due account payables to a secured 10-per-cent note
maturing August 23, 2002. The trade group agreeing to the financing plan
represents $11.2-million, equal to 90 per cent of all accounts payable of
the company over $10,000. Under the agreement, Benz will pay the group
$1.12-million by Sept. 3, 1999. The note will be retired using a portion of
the proceeds from the future sale of certain prospects, collections of
amounts owed to Benz from an industry partner and a portion of the
company's income after debt service and capital expenditures. The remaining
balance with accrued interest will be paid at maturity. The note will be
secured by a subordinate lien on certain properties of the company. Amounts
payable to vendors under $10,000, totalling $928,000, will be paid in full
by Sept. 2, 1999.
Robert S. Herlin, chief financial officer, commented: "We are pleased that
our suppliers and vendors have given the company a tremendous vote of
confidence by overwhelmingly supporting the financing plan. This agreement
is the fourth of five steps in our overall financial restructuring and
allows us to substantially improve our working capital. We look forward to
working with these vendors in our continued development drilling program in
Mississippi."
(c) Copyright 1999 Canjex Publishing Ltd. |
