Argosy Energy Inc. Announces Forbearance Agreement With Lender and Filing of A Notice of Intention to Make A Proposal to Its
Argosy Energy Inc. Announces Forbearance Agreement With Lender and Filing of A Notice of Intention to Make A Proposal to Its Creditors Pursuant to the Business and Insolvency Act
CALGARY, ALBERTA -- (Marketwire) -- 03/11/13 -- Argosy Energy Inc. which includes its wholly owned subsidiary, Radius Resources Corp. ("Argosy" or the "Company") (TSX:GSY) announces that it has entered into a Forbearance Agreement with its secured lender, the National Bank of Canada (the "Bank"), including delivery of a Consent Receivership Order to be held in accordance with the said Forbearance. The Bank has made demand upon Argosy for payment in full of its outstanding indebtedness in the aggregate amount of approximately $21.8 million plus accrued interest, costs and fees by the close of business on March 18, 2013. In addition, the Bank has provided Argosy with a Notice of Intention to Enforce Security pursuant to subsection 244(1) of the Bankruptcy and Insolvency Act ("BIA"). Under the terms of the Forbearance Agreement, the Company has waived the 10 day notice period pursuant to demands issued by the Bank dated March 8, 2013. Under the terms of the Forbearance Agreement the Bank has agreed to forbear from enforcing its remedies subject to the Company continuing to be bound and perform the same as outlined in the previous Credit Amending Agreement entered into with the Bank dated February 25, 2013, which major terms and conditions include:
-- Requirement to continue the process with Sayer Energy Advisors as the Company's sales and marketing agent to pursue a sale of all of its property and assets. -- Requirement that all of the proceeds from any sale of or disposition of any of the Company's petroleum and natural gas assets whether under and pursuant to the Sayer sales process or otherwise, shall be used to permanently repay amounts owed to the Bank. -- Closing of a transaction of purchase and sale on or before April 30, 2013. -- Repayment in full of all indebtedness to the Bank on or before April 30, 2013. -- Amendment fees and monthly extension fees payable to the Bank.
Unless further extended by the Bank, in its sole and unfettered discretion, the forbearance of the Bank's rights shall remain in full force and effect until the earlier of April 30, 2013 and the date the Bank issues a notice as the result of non-performance of Argosy under the Credit Agreement, Credit Amending Agreement, Security, Letter of Guarantee or the Forbearance Agreement or the stay of proceedings in the NOI Proceedings being terminated.
In addition, the Company and its wholly owned subsidiary, Radius Resources Corp. have filed a Notice of Intention to File a Proposal to their creditors under Section 50.4 of the BIA and have appointed PricewaterhouseCoopers Inc. as Proposal Trustee therein.
ABOUT ARGOSY ENERGY INC.
Argosy is a junior oil and gas company focused on the exploration for and development of oil and natural gas in western Canada.
Advisory Regarding Forward-Looking Information
This press release contains forward-looking information concerning including but not limited to the Company's banking arrangements. Although Argosy believes that the expectations reflected in the forward-looking statements are reasonable, the forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. As such, readers are cautioned not to place undue reliance on the forward-looking information, as no assurance can be provided as to the future results, levels of activity or achievements. Risks include, but are not limited to: uncertainties and other factors that are beyond the control of the Company, risks associated with the oil and gas industry, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve obligation to update any forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Corporation. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Additional information identifying risks and uncertainties is contained in the Company's Annual Information Form as well as other filings of the Company with Canadian securities regulators, which filings are available under the Corporation's profile at www.sedar.com. Contacts: Argosy Energy Inc. Mr. Peter Salamon President and CEO (403) 269-8846
Argosy Energy Inc. 500, 1414 - 8th Street S.W. Calgary, Alberta firstname.lastname@example.org
PricewaterhouseCoopers Inc. Mr. Paul Darby Partner (403) 509-6677
PricewaterhouseCoopers Inc. 3100, 111 - 5th Avenue S.W. Calgary, Alberta email@example.com