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.