Contour Receives Acceleration Notice.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--June 4, 2002 CONTOUR ENERGY CO. ("Contour" or the "Company") announced today that the trustee for its 14% senior secured notes ("Senior Notes") has sent a notice of acceleration of that debt to the Company. Although the Company has paid in full all obligations due to date under the Senior Notes, because interest due on its 10 3/8% senior subordinated notes was not paid timely pending restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). discussions, a cross default has occurred under the Senior Notes. Negotiations to forestall fore·stall tr.v. fore·stalled, fore·stall·ing, fore·stalls 1. To delay, hinder, or prevent by taking precautionary measures beforehand. See Synonyms at prevent. 2. acceleration of the debt by holders of the Senior Notes were unsuccessful. The acceleration notice is a demand for immediate and full payment of principal of $105 million plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. on the Senior Notes. Since the Company does not currently have sufficient funds to pay in full the Senior Notes, the trustee of the Senior Notes may attempt to pursue collection by filing a lawsuit or foreclosing upon collateral. The acceleration of the Senior Notes by the trustee makes the filing of a bankruptcy petition by the Company likely. The Company continues to hold discussions with the principal holders of its 10 3/8% senior subordinated notes to effect a conversion of that debt into substantially all the equity of the Company. While the Company does not expect acceleration of the Senior Notes or the filing of a bankruptcy case to adversely affect the restructuring discussions, there can be no assurance of a successful outcome. Contour Energy Co. is engaged in the exploration, development, acquisition and production of natural gas and oil. Contour Energy Co. common stock is traded on the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. under the symbol CONC. Cautionary Statement as to Forward-Looking Information Statements made herein (as well as information included in oral or other written statements made or to be made by the Company or its representatives) that are forward-looking in nature are intended to be "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " 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, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc matters such as anticipated operating and financial performance, business prospects, future reserves, cash flow and value, developments and results of the Company. Actual performance, prospects, reserves, cash flow and value, developments and results may differ materially from any or all anticipated results due to economic conditions and other risks, uncertainties and circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or partly or totally outside the control of the Company, including rates of inflation, natural gas prices, uncertainty of reserve estimates, rates and timing of future production of oil and gas, exploratory and development activities, acquisition risks, changes in the level and timing of future costs and expenses related to drilling and operating activities and those risk factors described in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , including the amendment thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. , for the fiscal year ended December 31, 2001. Words such as "anticipated", "expect", "estimate", "project" and similar expressions are intended to identify forward-looking statements. Forward-looking statements include the risk factors described in the Company's Form 10-K mentioned above. |
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