Noreco Denies Rumors Concerning Financial Covenant Breach
Noreco has rejected recent rumors and reported that the Company remains very proactive in managing its business and debt position. Moreover, Noreco has sufficient cash from its strong production to run the Company and meet its debt obligations, and the Company is not and does not expect to be in breach of any of its financial or other covenants.
"There have been rumors lately regarding Noreco's covenants. As a general rule we do not comment on rumors, but this time the rumors are so widespread that we have chosen to inform the market," said CEO Scott Kerr.
"We are systematically reviewing the relevant financial covenants and I can confirm that Noreco is not and does not expect to be in breach of any of its financial or other covenants. Noreco has been in dialogue with Norsk Tillitsmann, who confirms the position of Noreco in relation to its bonds," added Kerr.
In the third quarter, Noreco has used some of the Company's cash position to reduce debt. At the end of the third quarter, Noreco will routinely review all its financial covenants pertaining to its bonds and report to Norsk Tillitsmann that the Company is not in breach of any of its financial or other covenants in accordance with the terms of the respective bond loans.
"Noreco has a strong production, the oil prices are still high and we have sufficient cash, and our main message today is that we have the flexibility to meet our obligations," Kerr emphasized.
- Shell Agrees to $1.9B Sell of Upstream Danish Assets to Noreco (Oct 17)
- Det Norske to Acquire Noreco's Norwegian Portfolio (Mar 02)
- Noreco Oil UK Receives Huntington License Default Notice (Nov 02)