Brief: Terrace Energy says management, staff voluntarily reduced salaries

Terrace Energy

25/05/2016 14:00

May 25 (Reuters) - Terrace Energy Corp  TZR.V : 
    * Terrace continues restructuring plans and provides update 
    * Subsidiary was unable to satisfy certain financial ratio 
covenants set out in credit agreement with its secured lender 
    * All material capital expenditures have been deferred until 
late 2017 
    * Has negotiated right to receive additional distributions 
of future cash flows from STS after certain financial milestones 
are achieved 
    * Management and staff have voluntarily modified their 
employment contracts to substantially reduce salaries 
    * Company, on behalf of STS, was able to successfully 
negotiate settlement of over USD$25 million in secured debt 
without having to pay cash 
    * Will continue to work with advisors to evaluate different 
financial options, including, but not limited to, raising 
additional capital 
 
Source text for Eikon:  urn:newsml:reuters.com:*:nCNW9rhZsa 
Further company coverage:  TZR.V  
 
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