EEX reveals maturity and security details of proposed replacement revolving credit facility

By Sara Rosenberg

New York, March 25 - EEX Corp. is still negotiating with its lenders on replacing its current revolving credit facility, which matures on June 27, 2002, with a new loan. However the company did reveal certain new details about maturity and security for the proposed revolver in a press release on Monday.

The replacement revolver would mature in June 2003 and would be secured by an interest in the company's U.S. reserves and other assets. It would also require that EEX "prepay and terminate its gas sales obligation with an affiliate of Enron," the release said.

EEX is seeking an extension until April 15, 2002 to file its 10K with the Securities and Exchange Commission for the purpose of being able to include in the annual report the outcome of negotiations with the lenders, the release continued to say.

However, EEX warned its accountants may include a "going concern" warning in the 10K because it may not be able to close on the loan in time. Closing on the loan depends on EEX terminating the gas sales contract which the company does not expect to be able to do before filing the 10K.

This "going concern" warning by the accountants would be considered a default on the company's current revolver. EEX noted a waiver related to a previous default on the debt to capital ratio expires on April 30, 2002.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.