Scorpian please stop lying you are embarrassing yourself.
George Kesteven, Sterling’s manager of corporate and investor relations, said “we are in the process of going to Plan B and we have a number of options.” One of the options will be to request the company’s lenders ease up on some of the loan covenants. Kesteven explained that the syndicate — Societe Generale, BNP Paribas, Commonwealth Bank of Australia and GE Capital — has a requirement that Sterling maintain 20 million pounds in the kitty as restricted cash. As well, Sterling plans to investigate offers from alternative lenders which typically provide mezzanine finance.
“They are all doable, its a question of ‘At what cost?’” said Kesteven, noting that Sterling has a special short-term need for capital given that its Breagh operation (in which it has a 30% stake) will start producing next year. Peak production will be 140 mcf per year. “We need a bridge from now until Breagh starts producing.”