Benton Oil and Gas Company Announces Personal Bankruptcy Filing by A.E. Benton and Allowance Against Loan From the Company.CARPINTERIA, Calif.--(BUSINESS WIRE)--Aug. 6, 1999-- Benton Oil and Gas Company (NYSE NYSE See: New York Stock Exchange :BNO BNO Beroepsorganisatie Nederlandse Ontwerpers BNO Boys' Night Out (band) BNO Boyz Nite Out BNO Big Night Out (band) BNO Bau- und Nutzungsordnung BNO Baksan Neutrino Observatory ) today announced that A.E. Benton, its Chairman, President and Chief Executive Officer, has voluntarily filed for personal bankruptcy Personal bankruptcy is a procedure which, in certain jurisdictions, allows an individual to declare bankruptcy. In other jurisdictions, bankruptcies are reserved for corporations. under the provisions of Chapter 11 (reorganization) of the U.S. Bankruptcy Code Bankruptcy Code may refer to:
The action was taken as a result of the decline in the price of the Company's stock and its effect on Mr. Benton's personal financial situation. The Company believes that the filing is not a reflection of any change in the Company's operational and financial condition. Mr. Benton continues in his positions as Chairman, President and Chief Executive Officer of the Company. However, from an accounting perspective, the bankruptcy filing has added further uncertainty to the collectibility of a loan from the Company to Mr. Benton, which at June 30, 1999 had a balance of $5.7 million. The loan has been evidenced by a secured promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. from Mr. Benton. Mr. Benton had previously provided the Company with a security interest in his shares of stock of the Company and certain other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. . At December 31, 1998, the balance then owed to the Company by Mr. Benton exceeded the value of the collateral, primarily due to the decline in the price of the Company's stock, and the Company recorded an allowance for doubtful accounts Allowance for Doubtful Accounts An estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Notes: It is standard practice for a company to have funds set aside for money that cannot be collected. of $2.9 million. The Company now expects to report a further allowance of $2.8 million as of June 30, 1999 as a result of the bankruptcy filing and the uncertainties regarding the collectibility of the loan from Mr. Benton. Measuring the amount of such an allowance always requires judgments and estimates, and the amount eventually realized will depend on the results of the bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party . Notwithstanding the above, the Company intends to exercise its rights and remedies as a creditor in Mr. Benton's personal bankruptcy case and to take all measures available to it in order to obtain the repayment of its loan to Mr. Benton. The Company anticipates that no additional information regarding the collectibility of the loan will be available until it obtains more information from Mr. Benton regarding his prospective plan of reorganization. Benton Oil and Gas Company, headquartered in Carpinteria, California Carpinteria is a small oceanside city located in the southeastern extremity of Santa Barbara County, California, east of Santa Barbara and northwest of Ventura. The population was 14,194 at the 2000 census. , is an independent oil and gas exploration and development company with operations worldwide. This press release may contain "Forward-Looking Statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements other than statements of historical facts included in this release may constitute forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Actual results may differ materially from the Company's expectations due to changes in operating performance, project schedules, oil and gas demands and prices, and other technical and economical factors. |
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