VANCOUVER, Jan. 28, 2015 /PRNewswire/ - Ivanhoe Energy
Inc. (TSX: IE; NASDAQ: IVAN) (TSX: IE.DB) today announced that the
company continues to be actively engaged in discussions with
various stakeholders to recapitalize the company. Strategic
and financial alternatives under consideration are focused on
relieving the financial burden of the company's current debt
structure and obtaining additional financing necessary to fund
ongoing operations. There can be no assurance that the current
process will result in a transaction or, if a transaction is
undertaken, that it will be successfully concluded in a timely
manner or at all.
The company announced on December 12,
2014 that it did not expect to make the cash interest
payment (approx. C$2.1 million /
US$1.8 million) due on December 31, 2014 in respect of its outstanding
5.75% convertible unsecured subordinated debentures. To date, the
company has not made the interest payment and does not expect to do
so by January 30, 2015, the date upon
which the failure to make the payment will constitute an event of
default under the terms of the debentures. To date, the company has
not received a notice of default from the debenture trustee.
However, there can be no assurance that such notice will not be
given by the trustee.
Ivanhoe Energy is an independent international heavy-oil
exploration and development company focused on pursuing long-term
growth in its reserves and production using advanced technologies,
including its proprietary heavy-oil upgrading process
(HTL®). Core operations are in Canada, the United
States and Ecuador, with
business development opportunities worldwide. For more information
about Ivanhoe Energy Inc., please visit www.ivanhoeenergy.com.
FORWARD-LOOKING STATEMENTS: This document
includes forward-looking statements, including forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include, but are not
limited to the potential for commercialization and future
application of the heavy oil upgrading technology and other
technologies, statements relating to the continued advancement of
Ivanhoe Energy's projects, statements relating to the timing and
amount of proceeds of agreed upon and contemplated disposition
transactions, statements relating to anticipated capital
expenditures, statements relating to the timing and success of
regulatory review applications, and other statements which are not
historical facts. When used in this document, the words such as
"could," "plan," "estimate," "expect," "intend," "may,"
"potential," "should," and similar expressions relating to matters
that are not historical facts are forward-looking statements.
Although Ivanhoe Energy believes that its expectations reflected in
these forward-looking statements are reasonable, such statements
involve risks and uncertainties and no assurance can be given that
actual results will be consistent with these forward-looking
statements. Important factors that could cause actual results to
differ from these forward-looking statements include the potential
that the Company's projects will experience technological and
mechanical problems, new product development will not proceed as
planned, the HTL® technology to upgrade bitumen and
heavy oil may not be commercially viable, geological conditions in
reservoirs may not result in commercial levels of oil and gas
production, the availability of drilling rigs and other support
services, uncertainties about the estimates of reserves, the risk
associated with doing business in foreign countries, environmental
risks, changes in product prices, our ability to raise capital as
and when required, our ability to complete agreed upon and planned
asset dispositions, competition and other risks disclosed in
Ivanhoe Energy's 2013 Annual Report on Form 10-K filed with the
U.S. Securities and Exchange Commission on EDGAR and the Canadian
Securities Commissions on SEDAR.
SOURCE Ivanhoe Energy Inc.