Contour Updates Debt Restructuring Discussions.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--May 8, 2002 CONTOUR ENERGY CO. ("Contour" or the "Company") announced today that it has executed an agreement with the holders of over 75% of its 10 3/8% senior subordinated notes ("major holders") to forbear for·bear 1 v. for·bore , for·borne , for·bear·ing, for·bears v.tr. 1. To refrain from; resist: forbear replying. See Synonyms at refrain1. from enforcing certain default rights under the indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. while restructuring discussions are ongoing. The "forbearance Refraining from doing something that one has a legal right to do. Giving of further time for repayment of an obligation or agreement; not to enforce claim at its due date. A delay in enforcing a legal right. agreement" will expire on June 30, 2002. The trustees for both the 10 3/8% senior subordinated notes and 14% senior secured notes have been informed of the forbearance agreement and that the Company does not intend to pay interest currently due on the 10 3/8% senior subordinated notes prior to expiration of the grace period. The forbearance agreement does not waive To intentionally or voluntarily relinquish a known right or engage in conduct warranting an inference that a right has been surrendered. For example, an individual is said to waive the right to bring a tort action when he or she renounces the remedy provided by law for such the default under the indenture governing the 10 3/8% senior subordinated notes that will occur as a result of the failure to pay interest within the grace period. All interest due on the Company's 14% senior secured notes was paid on Friday, May 3, within the grace period provided by that indenture. However, failure to pay interest timely on the 10 3/8% senior subordinated notes will be a cross-default under the indenture governing the 14% senior secured notes. The Company has not sought a waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. or forbearance of this cross default. Negotiations continue with the major holders to effect a conversion of the 10 3/8% senior subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". into equity of the Company. Even though negotiations are continuing, there can be no assurance that a mutually acceptable agreement will be reached among the parties. Furthermore, the forbearance agreement does not alter the likelihood of a bankruptcy filing. 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 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, 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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