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by Stockwatch Business Reporter

West Texas Intermediate crude for August delivery lost $2.05 to $44.75 on the New York Merc, while Brent for September lost $2.21 to $46.26 (all figures in this para U.S.). Western Canadian Select traded at a discount of $13.95 to WTI ($30.80), unchanged. Natural gas for August added 0.3 cent to $2.737. The TSX energy index lost 2.71 points to close at 193.06.

Lightstream Resources Ltd. (LTS) lost two cents to 18 cents on 3.83 million shares, after facing the inevitable and proposing a recapitalization. For years the company has struggled with its debt, which is currently around $1.6-billion, comprising $650-million (U.S.) in secured notes, $254-million (U.S.) in unsecured notes and $371-million drawn -- or rather overdrawn -- on a $250-million credit line. Lightstream now plans to pay down about $1.2-billion of the debt by converting the notes into equity. The holders of the secured notes will hold 95 per cent of the resulting company, while the holders of the unsecured notes will hold 2.75 per cent. That will leave existing shareholders with just 2.25 per cent. Holders of about 91.5 per cent of the secured notes have agreed to support the recapitalization. It still needs the approval of the other noteholders and the shareholders, who will vote at a special meeting that Lightstream must hold by Sept. 30. If the deal is not approved, Lightstream plans to undertake a sale through the Companies' Creditors Arrangement Act (CCAA).

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