Camber Announces Letter From Lender
September 12 2017 - 5:35PM
Camber Energy, Inc. (NYSE American:CEI) (“Camber” or the
“Company”), an independent oil and gas company, announces that on
September 8, 2017, it received a final notice of default from its
senior lender, International Bank of Commerce (“IBC” or the
“Bank”), noting a payment default in the Company’s failure to pay
its August 25, 2017 installment payment (the “Payment
Default”). The notice also cited several covenant defaults by
the Company. The Company must cure the Payment Default by
paying $425,000, as well as any attorney’s fees or late fees as
determined by IBC, on or before September 16, 2017. The
Company has a 30-day cure period under its loan agreement with
respect to the covenant defaults. The Company is evaluating
its strategic alternatives as to how to address these defaults. The
IBC loan is secured by substantially all of the Company’s assets
other than those assets of CATI (as defined below), which secure
amounts owed under the note held by CATI (also as described below).
The Company also reports that the NYSE American (the “Exchange”)
has granted the Company a two-week extension, until September 19,
2017, to submit its plan of compliance (the “Plan”) addressing how
it intends to regain compliance with Sections 1003(a) (ii) and
(iii) of the Exchange’s Company Guide by August 3, 2018.
The Company also reports that it is still pursuing possible
resolutions of the default notice received by its wholly owned
subsidiary CATI Operating LLC (“CATI”). The cure period
on the note expires today at which time all principal, interest and
unpaid costs are immediately due and payable. As stated
previously, this loan is non-recourse to the public Company itself,
but is recourse to CATI, and the lender may take action to enforce
its security interest over CATI’s assets upon default.
The Company further announces that as it has engaged Dykema
Gossett as restructuring advisors to assist the Company in
continuing to evaluate all strategic alternatives.
About Camber Energy, Inc.
Based in San Antonio, Texas, Camber Energy (NYSE American:CEI)
is a growth-oriented, independent oil and gas company engaged in
the development of crude oil, natural gas and natural gas liquids
in the Hunton formation in Central Oklahoma in addition to the
Austin Chalk and Eagle Ford formations in South Texas.
For more information, please visit the Company’s website
at www.camber.energy.
Safe Harbor Statement and Disclaimer
This news release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements give our current
expectations, opinion, belief or forecasts of future events and
performance. A statement identified by the use of
forward-looking words including “may,” “expects,” “projects,”
“anticipates,” “plans,” “believes,” “estimate,” “should,” and
certain of the other foregoing statements may be deemed
forward-looking statements. Although Camber believes that the
expectations reflected in such forward-looking statements are
reasonable, these statements involve risks and uncertainties that
may cause actual future activities and results to be materially
different from those suggested or described in this news
release. These include risks inherent in natural gas and oil
drilling and production activities, including risks of fire,
explosion, blowouts, pipe failure, casing collapse, unusual or
unexpected formation pressures, environmental hazards, and other
operating and production risks, which may temporarily or
permanently reduce production or cause initial production or test
results to not be indicative of future well performance or delay
the timing of sales or completion of drilling operations; delays in
receipt of drilling permits; risks with respect to natural gas and
oil prices, a material decline which could cause Camber to delay or
suspend planned drilling operations or reduce production levels;
risks relating to the availability of capital to fund drilling
operations that can be adversely affected by adverse drilling
results, production declines and declines in natural gas and oil
prices; risks relating to unexpected adverse developments in the
status of properties; risks relating to the absence or delay in
receipt of government approvals or fourth party consents; and other
risks described in Camber’s Annual Report on Form 10-K and other
filings with the SEC, available at the SEC’s website
at www.sec.gov. Investors are cautioned that any
forward-looking statements are not guarantees of future performance
and actual results or developments may differ materially from those
projected. The forward-looking statements in this press release are
made as of the date hereof. The Company takes no obligation to
update or correct its own forward-looking statements, except as
required by law, or those prepared by third parties that are not
paid for by the Company. The Company's SEC filings are available
at http://www.sec.gov.
Contact
Bob SchleizerCFO Camber Energy, Inc.713-528-1881
Camber Energy (AMEX:CEI)
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