HOUSTON, Dec. 3 /PRNewswire/ -- KCS Energy, Inc. (NYSE: KCS) today
announced that the forbearance agreements on each of its revolving bank credit
agreements have been extended to March 2, 2000. These forbearance agreements
provide, among other things, that the lenders will refrain from exercising
rights and remedies for prior defaults until March 2, 2000 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 December 31, 1999, January 31, 2000 and
February 29, 2000. 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 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 have enabled the Company
to reduce bank debt by nearly $40 million since March 31, 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."
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.
 back to top
Related links:
http://www.kcsenergy.com
CONTACT:
James W. Christmas, President and CEO of KCS
Energy, Inc., 713-877-8006; or General Info., Marianne Stewart,
212-661-8030, Analyst Info, Beth Lewis, 617-342-7003, or Media
Info, Claudine Cornelis, 212-661-8030, all of The Financial
Relations Board, for KCS Energy, Inc.
|
