January 17, 2014 08:30 ET
CALGARY, ALBERTA--(Marketwired - Jan. 17, 2014) - Calmena Energy Services Inc. (TSX:CEZ) ("Calmena" or the "Company") announces an update on the status of its senior credit facilities.
On October 29, 2013 Calmena and its senior lender entered into an agreement (the "Agreement") whereby the senior lender agreed to forbear from demanding payment or enforcing security with respect to amounts owing by Calmena under its credit facilities ("Credit Facilities") with the senior lender, for a period of 45 days. Since the expiration of that period, Calmena and its senior lender have been negotiating in respect of an extension of the forbearance arrangements, but ultimately were unsuccessful in coming to terms respecting an extension of the Agreement. As a result, the senior lender has requested payment of all amounts owing to it under the Credit Facilities by February 15, 2014. The Credit Facilities consist of a revolving demand operating facility with a maximum borrowing capacity of $10.0 million (subject to a borrowing restriction based on the carrying amount of Calmena's Canadian and US trade receivables), and a revolving extendible facility with a maximum borrowing capacity of $24.6 million. The total owing under the Credit Facilities is currently $28.6 million. Calmena also owes $16.0 million to secured lenders under facilities that are subordinated and postponed to the senior lender. Until February 15, 2014, Calmena shall continue to be able to draw on the operating facility, with no further draws being available on the extendible facility.
ABOUT CALMENA ENERGY SERVICES INC.
Calmena is a diversified energy services company that provides well construction services to its customers operating in Canada, the United States, Latin America and the Middle East and North Africa. The common shares of Calmena trade on the Toronto Stock Exchange under the symbol "CEZ".
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Calmena Energy Services Inc.John R. KingPresident and Chief Executive OfficerPhone: (403) 225-3879Calmena Energy Services Inc.Peter J. BalkwillVice President Finance and Chief Financial OfficerPhone: (403) 225-3879Calmena Energy Services Inc.Phone: (403) 225-3879Fax: (403) 366-2066700, 333 - 7th Avenue SWCalgary, Alberta T2P 2Z1www.calmena.com
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