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
-- 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,
-- Repayment in full of all indebtedness to the Bank on or before April 30,
-- 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.
Argosy Energy Inc.
Mr. Peter Salamon
President and CEO
Argosy Energy Inc.
500, 1414 - 8th Street S.W.
Mr. Paul Darby
3100, 111 - 5th Avenue S.W.
Press spacebar to pause and continue. Press esc to stop.