UPDATE 1-Petroflow Energy says in breach of debt covenants
* Q3 loss C$0.30/shr vs EPS C$0.41 a yr-ago
* Says bank loan reclassified as a current liability
Nov 12 (Reuters) - Canada's Petroflow Energy Ltd (PEF.TO) said it was not in compliance with its debt covenants and needed to raise $18 million by Dec. 17 to reduce debt as part of an amended agreement with its lenders.
As a result of its noncompliance, the company said its bank loan has been reclassified as a current liability.
The company said its ability to continue as a going concern will be dependent on various factors, including securing ongoing debt and equity financing, and the sale of a portion of its property and equipment assets.
For the third quarter, the company reported a net loss of C$8.7 million, or 30 Canadian cents a share, compared with net income of C$12.0 million, or 41 Canadian cents a share, a year ago.
Total sales fell 46 percent to C$9.0 million, hurt mainly by lower commodity prices.
Shares of the company closed at 49 Canadian cents Thursday on the Toronto Stock Exchange. (Reporting by Amit Kumar in Bangalore; Editing by Anne Pallivathuckal)
