VANCOUVER, Feb. 16, 2015 /PRNewswire/ - Ivanhoe Energy Inc.
(TSX: IE; NASDAQ: IVAN) (TSX: IE.DB) announced today that the
company received a letter from The Bank of New York Mellon, as
trustee of the company's outstanding 5.75% convertible, unsecured,
subordinated debentures. The letter notified the company that an
Event of Default has occurred by reason of the company not paying
the interest due on the debentures on December 31, 2014 and the expiration of the
30-day grace period for paying the interest payment.
As Ivanhoe Energy previously reported in news releases on
December 12, 2014 and January 29, 2015, the company did not expect to
make the cash interest payment of approximately C$2.1 million (US$1.8
million), which was due on December
31, 2014 in respect of its outstanding debentures. Under the
indenture governing the debentures, a failure to make an interest
payment is subject to a 30-day grace period.
The aggregate principal amount of debentures outstanding under
the indenture is C$73.3 million, plus
accrued and unpaid interest of approximately C$2.1 million (US$1.8
million). The notice demanded that the company immediately
pay the interest payment.
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.
Ivanhoe Energy is an independent international heavy-oil
exploration and development company focused on pursuing long-term
growth using advanced technologies, including its proprietary
heavy-oil upgrading process (HTL®). For more information
about Ivanhoe Energy Inc., please visit www.ivanhoeenergy.com.
SOURCE Ivanhoe Energy Inc.