May 14, 2009 / 11:40 AM / 9 years ago

UPDATE 1-ProSep posts narrower Q1 loss, seeks to reduce debt

* Q1 loss C$0.03/shr vs loss C$0.05/shr last year

* Revenue up 45 pct at C$13.2 mln

* Says in discussions to reorganize capital structure

* Says discussions may result in swapping debt for equity

May 14 (Reuters) - ProSep Inc (PRP.TO) posted a narrower quarterly loss, helped by strong growth in its U.S. operations, and said it was exploring ways to reduce its overall debt and preserve cash.

“Debt servicing in the parent company cannot be met in the second half of 2009 due to debt covenants restricting the use of available liquidities from operations,” Chief Executive Jacques Drouin said in a statement.

“We have initiated discussions with current debtholders with a view to reorganizing our capital structure. The outcome of these discussions may result in the swapping of all or part the company’s debt for equity.”

For the first quarter, the company, which was previously called Torr Canada Inc, reported a net loss of C$2.0 million, or 3 Canadian cents a share, compared with a loss of C$3.3 million, or 5 Canadian cents a share, last year.

Revenue rose 45 percent to C$13.2 million. The completion of major contracts and favourable exchange rates allowed U.S. operations to achieve revenue growth of 29 percent to C$10 million for the quarter.

Analysts on average expected the company to break even, on revenue of C$16.7 million, according to Reuters Estimates.

Shares of the company closed at 24 Canadian cents Wednesday on the Toronto Stock Exchange. (Reporting by Kunal Raina in Bangalore; Editing by Anne Pallivathuckal)

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