American Resources of Delaware, Inc. Announces Extension of Terms of Bridge Financing Provided by DNB Energy Assets, Inc.VERSAILLES, Ky.--(BUSINESS WIRE)--Oct. 2, 1998--American Resources of Delaware, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :GASS GASS Greenland Air Surveillance System GASS Gas Analyzing Sensor System GASS Guidance Accuracy Study for SPRINT GASS Google AdSense Stats Syndrome GASS Generic Application Simulation System (Boeing Rotocraft) ) (the "Company") today announced that its primary lender, DNB DNB Dictionary of National Biography DNB Drum N Bass (music) DNB De Nederlandsche Bank DNB Dun & Bradstreet (stock symbol) DNB Den Norske Bank DNB David Nelson Band Energy Assets, Inc. ("DNB"), has extended the terms of the $16.5 million bridge financing Bridge Financing A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations. Notes: These funds are usually supplied by the investment bank underwriting the new issue. which was used to partially fund the Company's acquisition of substantial offshore Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east properties in March of this year. The bridge financing originally bore interest at either the prime rate or the LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 3% and matured on October 1, 1998. DNB has extended the maturity date until December 31, 1998 and amended the interest rate to either the prime rate plus 1% or the LIBOR plus 4%. DNB further agreed to amend the terms of the Company's credit facility to waive the payment of principal and certain debt covenant compliance requirements through December 31, 1998. The Company further announced that it has not made any payments on a note payable to TECO (Text Editor and COrrector) A text editor written in 1963 by Dan Murphy at MIT for editing paper tape on a Digital PDP-1 computer (it was originally called "Tape Editor and Corrector"). Oil & Gas, Inc. ("TECO") in the amount of $18.5 million which was executed as partial payment for the acquisition of the offshore Gulf of Mexico properties and also matured October 1, 1998. Therefore, TECO has been vested with the rights to acquire ten (10%) percent of the Company's issued and outstanding shares and options, together with the right to appoint two members to the Company's Board of Directors. However, TECO has not taken any action to exercise its warrant rights or make any appointments to the Company's Board at this time. The Company's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Rick Avare, commented: "We continue to explore all possible avenues in order to secure permanent financing for this Gulf acquisition which we believe will play a major role in the success of our future development, and we appreciate the support we are receiving from our bank and major creditors." American Resources of Delaware, Inc. is an independent producer of oil and gas, with production primarily in the Gulf Coast Region. Statements made herein that are forward-looking in nature are intended to be "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. Actual performance, prospects, developments and results may differ materially from any and all anticipated results due to the risk factors described in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1998, which is on file with the Securities and Exchange Commission. For more information, contact the Company's Investor Relations Department at 606/873-5455; or visit our website at www.arisgc.com. |
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