Finance - Restructuring
The restructuring will "bolster liquidity," said Anthony C. Schnur, CEO.
As a result of the previously announced restructuring, Lone Pine whittled long term debt to CA $90 million, down from CA $395 million, the company said.
The name change and receipt of the stock symbol end the Dec. 9, 2013 asset purchase agreement between Bering Exploration and Breitling Oil and Gas Corp., the company said.
The Bank nominated Forth Worth-based Southwest Bank as successor
Company is in talks with lenders
Dakota Plains plans to decrease its total promissory notes outstanding from $26.6 million to $7.7 million.
The recapitalization provides for a non-brokered private placement, the appointment of a new management team and board of directors, and a rights offering to current holders.
Milton Cox has tendered his resignation as both the CEO and director; Sam Nastat has been appointed as the CEO and president.
The refinancings are expected to reduce the company's current annual interest expense by over $16 million.
Net proceeds will be used for general corporate purposes, including working capital and capital expenditures.
Lone Pine intends to cancel outstanding shares of its common stock, convert senior notes, and launch a new preferred share offering.
The corporation also intends to complete a non-brokered private placement offering of 10% secured subordinated convertible debentures.