Mr. Alex Verge reports
JOURNEY ENERGY INC. PROVIDES BANKING UPDATE
Journey Energy Inc. has extended the forbearance agreement with its banking syndicate.
Journey has reached an agreement with its syndicate of lenders to extend the current forbearance agreement until July 31, 2020. Journey has been diligently working with its lenders to reach an amicable solution to the reduction in its borrowing base caused by the impact of the COVID-19 pandemic on the worldwide economy and the resulting decrease in oil prices. The extension of the forbearance period will allow Journey additional time to keep pursuing a solution.
The extension to the forbearance agreement includes holding the bank line at a maximum of $77-million until the termination of the agreement on July 31, 2020, at which time the forbearance will be re-evaluated. During the intervening period, Journey will evaluate various alternatives with the syndicate, as well as continue to pursue the federal-government-backed loan support programs for the oil and gas sector announced on April 17, 2020.
Journey has reached an agreement with one of its largest shareholders and term debt provider, Alberta Investment Management Corp. (AIMCo), to add the semi-annual interest payment and accommodation fees due today to the principal amount owing under the loan. The capitalization of $2.3-million will provide Journey with much needed liquidity during these difficult times. Journey appreciates the continuing support provided by AIMCo as a key investor.
Journey is a Canadian exploration and production company focused on oil-weighted operations in Western Canada.
We seek Safe Harbor.
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