Gasco Energy Inc. (GSXN.OB) announced Monday that it is continuing to evaluate its strategic alternatives for its assets, including a sale of the company or all of its assets. Stephens, Inc., Gasco's financial advisor, has been assisting and continues to assist in the evaluation process, which is intended to maximize the value of Gasco's assets.
Ssince mid-year 2012, the company has been seeking to restructure or refinance its debt or to sell some or all of its assets to improve its liquidity position. While these efforts have not been successful to date, Gasco said it is continuing to evaluate and pursue various options to address the Company's liquidity constraints.
It is possible these strategic alternatives will require the Company to make a pre-package, pre-arranged or other type of filing for protection under Chapter 11 of the U.S. Bankruptcy Code. In addition, because the Company has not made the required interest payment on its outstanding 5.50% convertible senior notes due 2015 within 30 days after the date when due, an event of default has occurred under the indenture governing the notes and an involuntary petition for bankruptcy may be filed against Gasco. These factors raise substantial doubt about the company's ability to continue as a going concern, Gasco said.
The company stated that its cash management strategies may limit its ability to successfully execute its strategic alternatives.
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