Friday, October 30, 2009

Cubic Gets Another Month

Wells Fargo Energy Capital granted Cubic Energy another month to refinance its debt. Back in June, Wells informed Cubic that it had "redetermined its borrowing base." That's finance speak for pulling a portion of Cubic's debt, in this case reducing the amount Cubic could borrow from $20 million to $7.5 million. Since the money was already borrowed, Wells gave Cubic time to find a solution to repay the loan to the revised lower level rather than throwing the company in default. So far, deadlines of September 1, October 1 and now November 1 have passed without resolution, so Wells has granted Cubic until December 1 to fix the situation.

The company is still looking at a year end deadline to justify its AMEX stock listing.

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