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Petroglobe Announces Demand by Lender to Repay Outstanding Indebtedness and Notice of Intention to Enforce Security

Jul 17 2013 12:00AM

Marketwire

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CALGARY, ALBERTA -- (Marketwired) -- 07/17/13 -- PetroGlobe Inc. ("PetroGlobe" or the "Company") (TSX VENTURE: PGB) announces that its lender, Alberta Treasury Branches ("ATB"), has made demand upon PetroGlobe for payment in full of its outstanding indebtedness in the aggregate amount of approximately $1.8 million plus accrued interest, costs and fees by the close of business on July 25, 2013. In addition, ATB has provided PetroGlobe with a Notice of Intention to Enforce Security pursuant to subsection 244(1) of the Bankruptcy and Insolvency Act (Canada) ("BIA").

Management of PetroGlobe is working with its lender to come up with a plan to repay the indebtedness under the facility, which plan may include the sale of assets or corporate restructurings. If the Company is unable to satisfy the repayment requirement or enter into adequate forbearance arrangements with its lender, the lender may take realization remedies against the Company, or the Company may be forced to seek creditor protection or voluntary receivership in order to resolve the demand. There is a risk that the Company's assets may not be sufficient to satisfy the demand plus the costs associated with a realization or liquidation in respect thereof.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.



Contacts:
PetroGlobe Inc.
Jason E. James
Chief Financial Officer
(403) 265-4488 ext. 234
jason.james@petroglobe.com

PetroGlobe Inc.
Bill Powers
Interim Chief Executive Officer
(312) 315-7573





Source: Marketwire


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