VANCOUVER, Jan. 27, 2016 /CNW/ - Terrace Energy
Corp. (the "Company") (TSXV: TZR, OTCQX: TCRRF,
Germany: 2TR) announced today that it will not be making the
January 31, 2016 interest payment on
its 8% convertible unsecured notes (the "Notes") due 2018.
Pursuant to the terms of the Indenture, interest payments are
payable on a quarterly basis, on the last day of January, April,
July and October in each fiscal year of the Company. An event of
default will occur if the Company fails to make an interest payment
within the 15 day cure period provided for in the Indenture, in
respect of two consecutive interest payment dates. As such, the
Company will not be in default for failing to make the January 31, 2016 payment.
The interest deferral will result in approximately $800,000 net cash savings for the quarter.
Given current market conditions in the oil and gas industry and
projected outlook and the Company's liquidity and other
requirements, the Company is reviewing strategic alternatives to
preserve liquidity and its ongoing business and may seek to
restructure the terms of the Notes.
About Terrace Energy
Terrace Energy is an oil & gas development stage company
that is focused on unconventional oil extraction in onshore areas
of the United States with a
particular focus on South
Texas.
ON BEHALF OF THE BOARD OF DIRECTORS
"Dave Gibbs"
Dave Gibbs, CEO
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.
Forward-Looking Information
This press release includes forward-looking information and
forward-looking statements (together, "forward-looking
information") within the meaning of applicable Canadian and
United States securities laws.
Forward-looking information includes statements regarding the
effect of the deferral of the interest payments and the liquidity
of the Company following the deferred payments. Users of
forward-looking information are cautioned that actual results may
vary from the forward-looking information disclosed in this press
release. The material risk factors that could cause actual results
to differ materially from the forward-looking information contained
in this press release are described under the heading "Risk
Factors" and elsewhere in the Company's most recent Annual
Information Form and other documents filed with Canadian securities
regulators at www.sedar.com.
The Company does not assume the obligation to update any
forward-looking information, except as required by applicable
law.
SOURCE Terrace Energy Corp.