Greka Receives Bids for Potash
Greka Energy Corporation has received numerous competing bids from interested purchasers to acquire the Company's interests in the Potash Field (Louisiana) for a price within the Company's expectations. The Company will be negotiating with the top qualified bidders over the next two weeks in order to conclude a definitive sale. The Company likewise expects an on-time delivery by April 24th of bids from prospective purchasers to acquire the Company's interests in the Richfield East Dome Unit in California.
The Company has entered into a term sheet for up to $30 million in secured financing to close by late May. This funding is the first of a two-phase debt restructuring plan to be concluded concurrently with the oil and gas asset sales resulting in a significant improvement in the Company's liquidity and operations.
The Company further explained that Nasdaq rules automatically appended the fifth character "E" to Greka's trading symbol due to the delay of the Form 10-K filing for the year-ended December 31, 2001. The "E" character will be removed upon the Company filing its Form 10-K which is expected within ten business days. The Company received notice that Nasdaq's minimum listing requirements provided in Marketplace Rule 4310(c)(14) require the Company to file its Form 10-K timely or its securities are subject to delisting. The Company has filed the necessary documents that automatically stay any potential delisting of the Company's securities.
Mr. Randeep S. Grewal, Chairman, CEO & President, stated, "In early March, management decided to implement a significant, focused restructuring plan for conclusion in the second quarter and further challenged the Company's resources to accomplish this proactive plan in a very tight time frame. Within 45 days of such announcement, we are well on our way toward achieving material milestones that fulfill this important strategy, as exemplified by the Potash bids received and the financing term sheet executed. The Company is able to attain these aggressive milestones in addition to their day-to-day operations because of its invaluable employee work force that is committed to the plan. Even with these extraordinary tasks, the Company is operating at new levels, such as its all time high throughput rate at its refinery of 3,600 barrels per day.
"With the 10-K expected to be filed within two weeks, the temporary 'E' appendage to our stock symbol will be removed in the short-term. Management anticipates that Nasdaq will take into consideration factors that have contributed to the filing delay of our Form 10-K such as the required participation of the Company's former auditors and the Company's significant restructuring first announced on March 4th resulting in material changes to
its ongoing operations."