VANCOUVER, Jan. 28, 2015 /CNW/ – Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) (TSX: IE.DB) today announced that the company continues to be actively engaged in discussions with various stakeholders to recapitalize the company. Strategic and financial alternatives under consideration are focused on relieving the financial burden of the company’s current debt structure and obtaining additional financing necessary to fund ongoing operations. There can be no assurance that the current process will result in a transaction or, if a transaction is undertaken, that it will be successfully concluded in a timely manner or at all.
The company announced on December 12, 2014 that it did not expect to make the cash interest payment (approx. C$2.1 million / US$1.8 million) due on December 31, 2014 in respect of its outstanding 5.75% convertible unsecured subordinated debentures. To date, the company has not made the interest payment and does not expect to do so by January 30, 2015, the date upon which the failure to make the payment will constitute an event of default under the terms of the debentures. To date, the company has not received a notice of default from the debenture trustee. However, there can be no assurance that such notice will not be given by the trustee.
Ivanhoe Energy is an independent international heavy-oil exploration and development company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy-oil upgrading process (HTL®). Core operations are in Canada, the United States and Ecuador, with business development opportunities worldwide. For more information about Ivanhoe Energy Inc., please visit www.ivanhoeenergy.com.
SOURCE Ivanhoe Energy Inc.
For further information: Investors: Bill Trenaman, +1.604.331.9834; Media: Bob Williamson, +1.604.512.4856