Company does not expect to make the cash interest payment
due December 31 on convertible
debentures
VANCOUVER, Dec. 12, 2014 /CNW/ - Ivanhoe Energy
Inc. (TSX: IE; NASDAQ: IVAN) (TSX: IE.DB) announced today that the
company's Board of Directors has been engaged in a process with its
financial advisors to devise and implement a strategy to address
Ivanhoe's liquidity, funding requirements and capital structure.
Strategic and financial alternatives under consideration are
focused on relieving the financial burden of the company's current
debt structure and obtaining additional financing necessary to fund
ongoing operations. The alternatives under discussion and review
include the sale of all or a portion of the company's assets,
recapitalization, debt restructuring or a combination of the
foregoing.
The company also announced that it does not expect to make the
cash interest payment (approx. C$2.1
million / US$1.8 million) due
on December 31, 2014 in respect of
its outstanding 5.75% convertible unsecured subordinated
debentures. As previously disclosed in the company's Form 10-Q
Interim Report for the period ended September 30, 2014, material uncertainty exists
as to the company's ability to access additional financing. Without
timely access to additional financing, there is significant doubt
as to the company's ability to continue as a going concern.
The company will make additional disclosure respecting the
status of this ongoing strategic and financial review process once
the Board of Directors decides to pursue a specific transaction or
series of transactions, or otherwise determines that disclosure is
necessary or appropriate. There can be no assurance that the
current process will result in a transaction or, if a transaction
is undertaken, that it will be successfully concluded in a timely
manner or at all.
Ivanhoe Energy is an independent international heavy oil
exploration and development company focused on pursuing long-term
growth in its reserves and production using advanced technologies,
including its proprietary heavy oil upgrading process
(HTL®). Core operations are in Canada, the United
States and Ecuador, with
business development opportunities worldwide. Ivanhoe Energy trades
on the Toronto Stock Exchange with the ticker symbol IE and on the
NASDAQ Capital Market with the ticker symbol IVAN. For more
information about Ivanhoe Energy Inc. please visit
www.ivanhoeenergy.com.
FORWARD-LOOKING STATEMENTS: This document
includes forward-looking statements, including forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include, but are not
limited to statements regarding the company's ability to carry on
as a going concern, the ability to meet its ongoing obligations,
the potential for an asset sale, a recapitalization, or debt
restructuring, and the potential for commercialization and future
application of the heavy oil upgrading technology and other
technologies, and other statements which are not historical facts.
When used in this document, the words such as "could," "plan,"
"estimate," "expect," "intend," "may," "potential," "should," and
similar expressions relating to matters that are not historical
facts are forward-looking statements. Although Ivanhoe Energy
believes that its expectations reflected in these forward-looking
statements are reasonable, such statements involve risks and
uncertainties and no assurance can be given that actual results
will be consistent with these forward-looking statements. Important
factors that could cause actual results to differ from these
forward-looking statements include the availability of additional
capital and funding, the willingness of existing shareholders and
convertible debt holders to agree to a recapitalization plan or
debt restructuring, the potential that the Company's projects will
experience technological and mechanical problems, new product
development will not proceed as planned, the HTL®
technology to upgrade bitumen and heavy oil may not be
commercially viable, geological conditions in reservoirs may not
result in commercial levels of oil and gas production, the
availability of drilling rigs and other support services,
uncertainties about the estimates of reserves, the risk associated
with doing business in foreign countries, environmental risks,
changes in product prices, our ability to raise capital as and when
required, our ability to complete agreed upon and planned asset
dispositions, competition and other risks disclosed in Ivanhoe
Energy's 2013 Annual Report on Form 10-K filed with the U.S.
Securities and Exchange Commission on EDGAR and the Canadian
Securities Commissions on SEDAR.
SOURCE Ivanhoe Energy Inc.
