Norse Energy issued its 1st Quarter report, the fine print of which says that by Q3 they will probably be dead. Or sooner. Depending on when the bankruptcy court tosses Norses’s leases. Among other things, what this means is that Norse v Dryden may be Nobody v Dryden, which may moot whether the New York high court even bothers to hear Nobody’s appeal.
This from Norse’s latest financial report:
The DIP loan requires asset sales sufficient to pay off the loan. Alternative (andadditional) financing plans are also being considered, including raising further debt and/or equity. Should these efforts fail, Norse’s US subsidiaries risk running out of cash before the end of 3Q 2013. Pursuit of any strategic operating partnership may be contingent on exiting US Chapter 11 bankruptcy whereas assets sales are one of the conditions in the DIP loan.The ability of the Company to remain a going concern requires further asset sales, equity issuances, and/or debt issuances. The Company remains concerned about being able to execute asset sales and/or raise debt/equity before the DIP loan runs out by the third quarter.