ENDEVCO REACHES PRELIMINARY ACCORD WITH PRINCIPAL LENDERS
ENDEVCO REACHES PRELIMINARY ACCORD WITH PRINCIPAL LENDERS DALLAS, Jan. 3 /PRNewswire/ -- Endevco, Inc. (AMEX: EI) announced
today that it had reached agreement with all of its senior and subordinate lenders which provides that Endevco and its lenders commit to work toward a formal restructuring of the company's obligations. The restructuring is scheduled to be completed on or before May 31, 1992.
Pursuant to a standstill agreement through May 31, 1992 the lenders have agreed to forego scheduled payments and waive certain covenant defaults under applicable loan documents. "We are pleased that the four major insurance companies, Endevco's primary lenders, are agreeable to working with the company in restructuring our debt. Our mission was to create a level playing field for negotiations with our creditors in order to permit the achievement of a comprehensive debt restructure with all major creditors," said James W. Bryant, chairman of the board of Endevco. "This interim agreement constitutes the first step toward achievement of an overall restructure. This agreement gives us time to renegotiate the terms of our borrowing arrangements seeking to reduce interest charges, improve cash flow and strengthen our balance sheet. We firmly believe Endevco can compete and prosper through the '90s with an appropriate debt service schedule which allows adequate capital to maintain and improve our existing strong asset base. When gas prices recover and improve to sustain active gas drilling in North Louisiana and Mississippi, the company is well positioned with its pipelines and processing assets to participate in the recovery. Even with the present condition of low gas prices, Endevco is significantly increasing its revenues and cash flow from its gas processing and petroleum refinery segments." Endevco is a gas transportation and processing company. Its gas transportation segment includes gathering, transmission, marketing and storage of natural gas. Its processing segment includes gas liquids recovery, gas treating and petroleum refining. -0- 1/3/92 /CONTACT: James W. Bryant, chairman of the board, or Jack W. Young, executive vice president of Endevco, 214-691-5536/ (EI) CO: Endevco, Inc. ST: Texas IN: OIL SU: FC -- NY019 -- 6433 01/03/92 10:27 EST
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|Date:||Jan 3, 1992|
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