Caspian Services lenders agree to conditional default forbearances

By Caroline Salls

Pittsburgh, Aug. 26 - Caspian Services, Inc. has entered into conditional forbearance agreements with lenders Altima Central Asia (Master) Fund Ltd. and Great Circle Energy Services, LLC in connection with financial covenant violations, according to an 8-K filed Thursday with the Securities and Exchange Commission.

As of June 30, $19.15 million was outstanding under the Altima loan and $18.62 million under the Great Circle loan.

Under the forbearances, then lenders have each agreed not to exercise any of their default-related rights until the earliest of Sept. 22, the occurrence of an event of default not covered by the forbearance agreements or a determination by either lender that the company is not carrying out good faith negotiations for a longer-term forbearance or restructuring agreement.

A strategic restructuring plan must be completed by Sept. 13, and the company must review the plan with Altima, Great Circle and the European Bank for Reconstruction and Development by Sept. 20.

In addition, the forbearance will terminate if the company or any of its subsidiaries agree to sell any material assets or receivables with a face value of more than $100,000 or incur any capital expenditures in excess of $100,000 without the lenders' consent.

Based in Salt Lake City, Caspian provides oilfield services in the Caspian Sea.

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