Anyone out there?
Just in case anyone else has been stuck with this dog, a voice from the wilderness with some info. Sounds like they're not quite dead yet, but damn near. Anyone else have any info whatsoever?
SOT 2000-03-14 (provided courtesy of Canadian Corporate News.)
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Sedna Geotech Corporate Update
LIMA, PERU--The Company wishes to announce the following corporate
developments:
1. The Company has been working to restructure its outstanding
indebtedness and to reorganize its operating efficiencies and in
this regard advises as follows:
(a) Agreement has been reached with the Company's major creditor,
a large Peruvian bank, to restructure debt and leasing obligations
of the Company totaling USD$4,500,000 so as to spread those
payments out over a 5 year period.
(b) Agreement in principal has been reached with two leasing
principals in Peru which would see the Company restructuring
leasing obligations totaling $3,500,000. It is anticipated that
this arrangement will be finalized within 60 days.
(c) A total of USD$1,800,000 of indebtedness remains outstanding
to a Canadian bank and certain holders of convertible debentures.
As part of its restructuring program the Company will also be
negotiating with those groups in order to restructure that debt on
terms acceptable to all parties.
2. The Company has also entered into an agreement to sell its
Brazilian operations for USD$420,000 with the purchaser also
assuming indebtedness of USD$1,300,000. This agreement remains
subject to completion of formal documentation however the Company
anticipates closing by March 31, 2000. Prior to the sale the
Company's Brazilian subsidiary had been restructured with one of
its four drilling rigs moved to the Company's operations in Peru.
The sale was effected in order to enable the Company to improve
its operating efficiencies by focusing its efforts in Peru, the
Company's base of operations, and to address the negative impact
the declining Brazilian rial was having on the Company's
consolidated financial condition.
3. The Company has also received commitments from a major mine in
Peru to employ from 6 - 9 of the Company's drilling rigs,
including one water rig, for a substantial portion of the balance
of 2000. While the Company is currently providing services to the
mine in a reduced capacity, full engagement remains subject to the
Company's evidencing its ability to maintain the infrastructure
and support to operate at that capacity. The Company anticipates
spending the next 30 days gearing up to this level and is
confident of its ability to meet the requirements needed to
finalize the contract.
ON BEHALF OF THE BOARD
Hans Kuppers
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