It has been brutal for energy companies across North America for the last few years since crude prices went into a tailspin in September 2014 over ongoing concerns about a global supply glut. Since the start of the price rout, about 100 energy companies have been forced into bankruptcy, drowning in debt and unable to produce profitably at stubbornly low prices per barrel.
Late in 2015, shares of Camber Energy Inc. (NYSE MKT:CEI) were fetching over $5.00 per share only to see the share price erode in a hurry, erasing nearly every bit of shareholder value as the stock printed as low as 16 cents this month.
As the San Antonio-based independent oil and gas company faces non-compliance with NYSE American listing requirements and a default notice from its senior lender, International Bank of Commerce, an existing shareholder may come save the day.
On Wednesday, Camber said it executed a non-binding term sheet with the anonymous shareholder to immediately provide the company with equity capital to resolve the default situation with the bank. The bank earlier this month demanded that Camber pay $425,000 plus attorney's and late fees by September 16.
Camber said they are working with the bank with regards to explaining the expected cash infusion to get current.
Camber also reported it had until yesterday to submit to the NYSE American its plan of attack to regain compliance, for which the exchange granted a two-day extension until tomorrow to submit its intentions.
If that's not enough headache, CEI management is also trying to secure some resolution as to default notices for its wholly owned subsidiary CATA Operating Inc., although CATI's loan can't directly come back on Camber.
Investors aren't exactly whooping and hollering about the potential lifeline, but shares of CEI are trading ahead a Wednesday afternoon, up 6.5% at 17.8 cents.
