Admiral Bay Engages FIG Partners as Financial Advisor to Evaluate Strategic Alternatives
October 06 2009 - 11:23AM
Marketwired
Admiral Bay Resources Inc. (TSX VENTURE: ADB) Admiral Bay Resources
Inc. ("Admiral Bay" or the "Company") announces that its board of
directors is exploring strategic alternatives to increase
shareholder value. The Company has engaged FIG Partners LLC Energy
Research & Capital Group ("FIG") as its financial advisor to
assist in the strategic alternatives process. FIG will assist the
Company in identifying and analyzing various alternatives,
including merger alternatives or possible restructuring of the
Company's credit facility.
The Company executed an amendment to its credit agreement with
Gasrock Capital LLC and DK Acquisition Partners, LP that allows for
partial payment-in-kind ("PIK") interest for four months ended
October 2009. The Company will pay a minimum 5% cash interest and
have the option to PIK the balance for a total maximum cash plus
PIK interest of 15%.
The Company also stated that it does not expect to disclose
developments with respect to the exploration of strategic
alternatives unless and until its Board of Directors has approved a
definitive transaction or strategic option. There can be no
assurance that any transaction will occur or, if a transaction is
undertaken, there can be no assurance as to its terms or
timing.
President and CEO Steven Tedesco commented "While we continue to
have the support of our lenders as evidenced by the recent
amendment, we are looking to evaluate potential alternatives in the
current gas price environment to restructure the balance sheet to
allow for continued growth of the Company while improving our cost
structure and liquidity".
Admiral Bay Resources Inc. (www.admiralbay.com) is an emerging
unconventional gas production company focused on the development of
projects in the Cherokee Basin in southeast Kansas and the
Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX
Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Readers are cautioned
that any such statements are not guarantees of future performance
and that actual developments or results may vary materially from
those in these "forward-looking statements".
Neither the 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: Admiral Bay Resources Inc. Steven Tedesco President
& C.E.O. (303) 350-1255 (303) 617-8956 (FAX)
stedesco@admiralbay.com Admiral Bay Resources Inc. Robert Carington
CFO (303) 350-1255 (303) 708-1861 (FAX) rcarington@admiralbay.com
www.admiralbay.com
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