HOUSTON, Texas, Oct. 5 /PRNewswire/ -- KCS Energy, Inc. (NYSE: KCS) today
announced that the forbearance agreements on each of its revolving bank credit
agreements have been extended to Dec. 3, 1999 on the same terms. These
forbearance agreements provide, among other things, that the lenders will
refrain from exercising rights and remedies for prior defaults until
Dec. 3, 1999 and will continue to preclude the Company from making interest
payments on its senior and subordinated notes.
Under the agreements, the Company will continue making principal payments
of $2.5 million each month on Oct. 31, and Nov. 30, 1999. In addition, a
portion of the proceeds from the sale of any of the Company's oil and gas
properties will continue to be dedicated to payment of principal under the
facilities. When the forbearance agreements expire, the lenders will be able
to exercise their rights under the credit agreements for prior defaults,
including declaring the principal balances immediately due and payable.
KCS Energy President and Chief Executive Officer James W. Christmas said,
"We are pleased that our bank lenders are continuing to work with us. The
execution of our business and financial initiatives has enabled the Company to
reduce bank debt by $33 million from March 31, 1999 to Sept. 30, 1999. The
Company is continuing to carry out its 1999 capital program and remains
current on trade payables. Our efforts toward pursuing a consensual
restructuring transaction are ongoing with the assistance of our financial
advisors, Houlihan Lokey Howard & Zukin, and the Company is having continuing
conversations with institutional investors holding a majority of both classes
of outstanding notes. We appreciate the willingness of this bondholder group
to participate in a constructive dialogue."
KCS is an independent energy company engaged in the acquisition,
exploration, development and production of natural gas and crude oil with
operations in the Mid-Continent and Gulf Coast regions. The Company also
purchases reserves (priority rights to future delivery of oil and gas) through
its Volumetric Production Payments (VPP) program. For more information on KCS
Energy, Inc., please visit the Company's web site at
http://www.kcsenergy.com .
To receive KCS' latest news and other corporate developments via fax at no
cost, please call 1-800-PRO-INFO. Use company code KCS. See also
http://www.frbinc.com .
This press release contains forward-looking statements that involve a
number of risks and uncertainties. Among the important factors that could
cause actual results to differ materially from those indicated by such
forward-looking statements are delays and difficulties in developing currently
owned properties, the failure of exploratory drilling to result in commercial
wells, delays due to the limited availability of drilling equipment and
personnel, fluctuations in oil and gas prices, general economic conditions and
the risk factors detailed from time to time in the Company's periodic reports
and registration statements filed with the Securities and Exchange Commission.
SOURCE KCS Energy, Inc.
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Related links:
http://www.kcsenergy.com
Related links:
www.frbinc.com
CONTACT:
Kathryn M. Kinnamon, VP, Treasurer & Acting
CFO of KCS Energy, 713-877-8006; General, Marianne Stewart,
212-661-8030, Analysts, Beth Lewis, 617-342-7003, or Media,
Claudine Cornelis, 212-661-8030, all of The Financial Relations
Board, for KCS Energy
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