Diaz Resources Ltd. (Toronto Venture: DZR) announced a proposal to reorganize the company's capital structure and convert an aggregate of $15 million of debt into equity, eliminating approximately $1.58 million in annual interest payments.
If completed, management believes the share and debt reorganization will strengthen the company's balance sheet and better position Diaz to pursue financing or strategic alternatives that would facilitate the development of its asset base. In addition, as a consequence of continued challenging commodity prices and lower than expected production results, if the share and debt reorganization is not completed Diaz may be unable to make the interest payments due on its debentures on Dec. 31, 2012, which would result in Diaz being in breach of certain of its covenants under both the debentures and its bank facility and could result in the amounts owing under each being called for immediate repayment.
In light of the foregoing and other factors, the board of directors of Diaz approved proceeding with the share and debt reorganization. The board has engaged Sayer Securities Ltd. to advise the board in respect to the fairness of the transaction.
Recommended Reading
Flame Acquisition Holders Approve Merger with Sable Offshore
2024-02-14 - The business combination among Flame Acquisition Corp., Sable Offshore Holdings and Sable Offshore Corp. will be renamed Sable Offshore Corp.
SLB’s ChampionX Acquisition Key to Production Recovery Market
2024-04-21 - During a quarterly earnings call, SLB CEO Olivier Le Peuch highlighted the production recovery market as a key part of the company’s growth strategy.
TechnipFMC Eyes $30B in Subsea Orders by 2025
2024-02-23 - TechnipFMC is capitalizing on an industry shift in spending to offshore projects from land projects.
Will the Ends Justify the Means for W&T Offshore?
2024-03-11 - After several acquisitions toward the end of 2023, W&T Offshore executives say the offshore E&P is poised for a bounce-back year in 2024.
Weatherford M&A Efforts Focused on Integration, Not Scale
2024-04-25 - Services company Weatherford International executives are focused on making deals that, regardless of size or scale, can be integrated into the business, President and CEO Girish Saligram said.