BRIEF-Terrace Energy says management, staff voluntarily reduced salaries

Wed May 25, 2016 9:24am EDT
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May 25 (Reuters) - Terrace Energy Corp :

* Terrace continues restructuring plans and provides update

* Subsidiary was unable to satisfy certain financial ratio covenants set out in credit agreement with its secured lender

* All material capital expenditures have been deferred until late 2017

* Has negotiated right to receive additional distributions of future cash flows from STS after certain financial milestones are achieved

* Management and staff have voluntarily modified their employment contracts to substantially reduce salaries

* Company, on behalf of STS, was able to successfully negotiate settlement of over USD$25 million in secured debt without having to pay cash

* Will continue to work with advisors to evaluate different financial options, including, but not limited to, raising additional capital Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +1-646-223-8780)