BPZ Resources, Inc. (NYSE:BPZ), dwindled -36.68% and is now trading at $0.15.
According to the EDGAR On March 2, 2015, BPZ Resources, Inc. (NYSE: BPZ) was notified by the New York Stock Exchange that the staff of NYSE Regulation, Inc. has determined to start proceedings to delist the ordinary stock of the Company from the NYSE. Trading of the Companys ordinary stock on the NYSE was poised right away.
NYSE Regulation has resolute that the Company is no longer suitable for listing as its share price is abnormally low, following Section 802.01D of the NYSE Listed Company Manual. The Company also declared that it was engaging in negotiations with representatives of certain holders of the 2015 Notes and the 2017 Notes concerning, among other items, the potential terms under which one or both bond issues could be restructured to provide a capital structure which would allow the Company to keep on developing its oil and gas assets. As of February 28, 2015, the Company had cash on hand and cash equivalents of an estimated $47 million available to pay operating costs and expenses. If the corporation is unable to find the suitable solution during the grace periods, the Company could be forced to seek Chapter 11 Bankruptcy protection under the United States Bankruptcy Code, which is designed to offer protection from creditors while a corporation seeks restructuring and financing solutions to enable it to remain an economically viable business.
The Company has a right to review of this willpower by a Committee of the Board of Directors of NYSE Regulation. The NYSE will apply to the Securities and Exchange Commission to delist the common stock upon conclusion of all applicable procedures, including any appeal by the Company of the NYSE Regulation staffs decision.
Moreover According to the GLOBE NEWSWIRE, The company declared that it will exercise a provision under the bond indenture for the 6.5% Convertible Notes due March 1, 2015 with an outstanding chief amount of $60 million, whereby the Company will avail itself of the 10-day grace period offered for in the Indenture on principal and a 30-day grace period on interest due for a total amount due of about $62 million. Once exercised, the grace periods will expire on March 10, 2015 for chief and March 30, 2015 for interest.
The Company is engaged in negotiations with representatives of certain holders of the Notes of the Companys Convertible Bonds assigned with combined outstanding principal amounts of $229 million, maturing March 1, 2015 and October 1, 2017. These negotiations include among other items, the potential terms under which one or both bond issues could be restructured to provide a capital structure which would allow the Company to continue developing its oil and gas assets. Negotiations are also underway with other potential investors regarding alternative financing solutions.
While the Company is reviewing several options, an appropriate solution may not be found during the grace period. If the Company does not make the payment due on the 2015 Notes and a resolution cannot be reached by the end of the grace period, the Company would be in default under the terms of the 2015 Indenture. This action would result in cross-defaults to the 2017 Convertible Bond issue, and could force the Company to seek Chapter 11 Bankruptcy protection, which is designed to provide protection from creditors while a company seeks restructuring and financing solutions to enable it to remain an economically viable business.
BPZ Energy, which trades as BPZ Resources, Inc. under ticker symbol BPZ on the New York Stock Exchange and the Bolsa de Valores in Lima, is an independent oil and gas exploration and production company which has license contracts covering approximately 1.9 million net acres in offshore and onshore Peru.