This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Recovery Energy, Inc. Announces Debt Modifications, New Funding Commitments And Delay In Filing 10-K

Stocks in this article: RECV

DENVER, APRIL 17, 2013 /PRNewswire/ -- Recovery Energy, Inc. (NASDAQ: RECV) (the "Company"), an independent oil and gas exploration and production company with operations and assets in the Denver- Julesburg (DJ) Basin, today announced a delay in the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2012. The delay was precipitated by the Company's completion of negotiations with its lenders that among other things, achieved a reduction of its blended interest rate from 12.1% to 9.2%, and the receipt of a funding commitment that will affect its 2013 development program.

In a Notification of Late Filing on Form 12b-25 filed on April 1, 2013, the Company anticipated filing its annual report on Form 10-K no later than fifteen calendar days following the prescribed due date. Although the Company will not be able to file its annual report as scheduled, it anticipates filing no later than April 19, 2013.

"While making our periodic filings in a timely manner is very important to us, we determined that providing our shareholders and the public with the most accurate information available must take precedence in this situation," said A. Bradley Gabbard, President and Chief Financial Officer.

On April 15, 2013, the Company amended both its secured term loans with Hexagon, LLC ("Hexagon"), and its 8% Senior Secured Convertible Debentures to extend their maturity dates to May 16, 2014.  In consideration for the extended maturity date of both loans and the reduced interest rate and minimum loan payment under the secured term loans, the Company is required to provide both Hexagon and the holders of the debentures an additional security interest in 15,000 acres (or 30,000 acres in aggregate) of our undeveloped acreage. Additionally, pursuant to the amendment to the secured term loan, Hexagon agreed to (i) reduce the interest rate on the term loans from 15% to 10% beginning retroactively with March 2013, (ii) permit the Company to make interest-only payments for March, April, May, and June, after which time the minimum secured term loan payment will be no greater than $230,000 per month.   

On April 16, 2013, the Company executed a binding letter agreement with one of the holders of its debentures, which agreed to purchase an additional $1.5 million in the Company's debentures within 90 days. The letter agreement also provides for the other holders of the Company's debentures to purchase up to $3.5 million in additional debentures, subject to approval by its board of directors.

"This additional financing will enable us to expand our drilling program, and will provide us with significantly more flexibility in meeting our working capital needs," said Mr. Gabbard. 

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,885.27 +80.47 0.45%
S&P 500 2,072.71 +2.06 0.10%
NASDAQ 4,772.0310 +6.6510 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs