Transeuro Energy Corp.

Transeuro Energy Corp.

July 15, 2009 19:39 ET

Transeuro Energy Corp.: Update on Restructuring

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 15, 2009) - Transeuro Energy Corp. ("Transeuro" or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) announces that the settlement proposal presented to the holders of its "12 per cent Senior Secured Bond Issued 2007/2009, ISIN No 001 039621.1" has been accepted according to the voting requirements of the Bond Agreement. The bonds will subsequently be subject to the terms as set out in the resolution of the summons.

Prior to the Bondholders meeting the Company had reached a contingent settlement with approximately 75% of its outstanding creditors and with High Arctic Energy Services ('HAES'). By reaching an agreement with the bondholders these other settlement processes can now be completed, subject to agreement with the TSX Venture Exchange and Oslo Bors. In addition the Company will approach the remaining minor creditors with the intention of settling with all parties for shares on the same terms.

The company has sold 13.5 million shares of its subsidiary Eaglewood Energy Inc. for a net price of CAD$0.80 per share and proceeds of approximately CAD$10.8 million. The sale was subject to the approval of the Series A and B debenture holders and was conditional on a partial repayment of CAD$2 million to each debenture plus half of the remaining interest payment due in November and December 2009. The remaining portion of the debentures will be repaid according to the original agreement. Proceeds from the sale will be used to meet the cash commitments to the bondholders and to HAES as part of the restructuring process. The remaining cash will be used to pay down operating debts and for general corporate purposes.

The arbitration proceedings concerning the dispute between the Company and RAG, relating to the joint venture company 'Scythian Energy BV' are not part of the restructuring and will continue. Operations in Ukraine are halted until the dispute is resolved.

Overall the restructuring is expected to reduce the company's liabilities by approximately CAD$51million.

The Company is in discussion with the TSX Venture Exchange and Oslo Bors to issue the necessary shares and warrants, to satisfy the remaining conditions and terms of the restructuring process and to resume trading on both exchanges.

Transeuro Energy Corp. is involved in the acquisition of petroleum and natural gas rights, the exploration for, and development and production of crude oil, condensate and natural gas. The Company's properties are located in Canada, Armenia and Ukraine.

On behalf of the Board of Directors

Aage Thoen, Chairman

The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from the targeted results. The Company relies upon litigation protection for forward looking statements.

The TSX Venture Exchange and Oslo Bors have not reviewed, and do not accept responsibility for the adequacy or accuracy of the content of this news release.

Contact Information

  • Transeuro Energy Corp.
    Aage Thoen
    Transeuro Energy Corp.
    David Parry
    +1 604 681 3939