CALGARY, ALBERTA–(Marketwired – Jan. 25, 2016) – Long Run Exploration Ltd. (“Long Run” or the “Company”) (TSX:LRE) announces that it has entered into an extension to the interim forbearance and amending agreement to its credit agreement with its lending syndicate (the “Lenders”). The extension of the forbearance relief from January 22, 2016 to January 29, 2016 reflects the progress made to date in documenting the amendments to Long Run’s credit facilities, which is a pre-condition to the implementation of the plan of arrangement (the “Arrangement”) announced on December 21, 2015. Long Run expects that such amendments will be executed by the end of the forbearance period.
Long Run and the purchaser continue to work together toward the completion of the Arrangement for the benefit of all stakeholders. The forbearance extension has no impact on the anticipated closing of the Arrangement in April 2016.
As a term of the forbearance extension, the credit agreement has been amended to restrict the Company from making any payment of interest on its outstanding 6.40% convertible unsecured subordinate debentures (the “Debentures”) without the prior written consent of its Lenders. As a result, the semi-annual interest payment on the Debentures payable February 1, 2016 will be required to be deferred. However, this interest will be paid on closing of the Arrangement in connection with the acquisition of the Debentures, together with all other accrued and unpaid interest on the Debentures, in accordance with the Arrangement. The Toronto Stock Exchange (the “TSX”) has advised the Company that the Debentures, when they commence trading on January 26, 2016, will trade on an interest flat basis until further notice. The TSX has advised that it will not report accrued interest regarding any trades made on an interest flat basis to its participating organizations.
The Company’s Board of Directors and Management continue to believe that pursing the Arrangement is in the best interest of Long Run and its stakeholders.
Visit the Company’s website at www.longrunexploration.com.