RXT Plans to Strengthen Capital Structure
The multi-component seismic company Reservoir Exploration Technology ASA (RXT) plans to comprehensively restructure the capital structure of the company. RXT has a short term liquidity need of approximately US $50 million. The company expects to be cash flow positive in 2Q 2010 following the start up of the already announced contracts in the North Sea. The details of this plan are being formulated and have been discussed with the largest stakeholders of the company. The solution will include a short term loan facility, issue of new equity and restructuring of the existing obligations.
The company plans to distribute summons for bondholder meetings and notice for EGM shortly. Planned completion of the restructuring will be early April. There are no anticipated interruptions to normal field operations during this period.
RXT has received a letter of intent for contract award in UK. The survey has an estimated contract value of $8m. The survey will be acquired in two parts, first with "Ocean Pearl" and subsequently with "Vikland", each in single vessel mode. The survey is scheduled to commence in 1Q 2010.
Pareto Securities AS has been hired by the Board to assist in the restructuring and the issue of new capital.