DENVER, Feb. 29 /PRNewswire-FirstCall/ -- PRB Energy, Inc. today announced that it is working with its Senior Lenders that hold the Company's $15 million Senior Secured Debentures due August 31, 2008, in order to satisfy its future obligation and to settle a dispute of whether any default has occurred and whether a redemption has occurred, as asserted by the Senior Lenders. The Company does not believe that a default under the Debentures has occurred. Given its current negative working capital position and the Senior Lenders' assertion that it is in default, the Company is exploring all of the strategic alternatives available to it under applicable law, including filing for bankruptcy protection.
William F. Hayworth, the Company's President and Chief Executive Officer, stated, "We are in discussion with our Senior Lenders and working diligently to find the best solution for all our stakeholders, with the objective of recapitalizing the Company."
ABOUT PRB ENERGY, INC.
Since commencing operations in January 2004, PRB Energy has evolved into an exploitation and development company with activities in the Rocky Mountain States. The Company is vertically integrated, combining upstream exploitation and production as well as midstream gathering and processing for, primarily, its own production. This model is intended to increase PRB Energy's access to and acquisition of high-potential development properties at attractive prices and deliver cost savings.
FORWARD-LOOKING STATEMENTS
This press release may include certain forward-looking statements. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results is discussed in the Company's Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission and in subsequent filings under the Securities Exchange Act of 1934. The Company undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.
Company Contact: or Investor Relations Counsel:
PRB Energy, Inc. DRG&E
Bill Hayworth, CEO Jack Lascar/Lisa Elliott
(303) 308-1330 (713) 529-6600
