Mr. Bud Love reports
TERRA ENERGY ANNOUNCES AGREEMENT TO REDUCE CREDIT FACILITY
In agreement with the syndicate of lenders, including Canadian Imperial Bank of Commerce and ATB Financial, Terra Energy Corp. will reduce its current lending facility from $100-million to $94-million.
The facility's borrowing base is determined by the syndicate and is based on operational and financial indicators, including the company's reserves, operational results, and the syndicate's view of the economic environment and current and forecasted commodity prices. The reduction has been requested by Terra in anticipation of the company's annual bank review, which is to take place by the end of the second quarter. The company anticipates an adjustment to the lending value of its assets based upon the results of any asset divestiture process currently under way and the syndicate's current and forecasted commodity prices.
We seek Safe Harbor.