Essentially the situation is this: We made it through the last down turns by having a significant portion of our debt financed by private debentures that were on terms favorable to the company during the bad times. All former debentures were successfully retired and the past five years our primary source of funding and capital has been from institutions. However the need is present to refinance a portion of our debt back into private financing prior to the end of the year.
The terms are simple: 10% interest on unpaid principle. The company can suspend interest and principal payments to lender as long as prices are below $75/BBL