Key Developments For OMNI Energy Services Corp.
OMNI Energy Services Corp. (OMNI.O) (Nasdaq)
OMNI Energy Services Corp. Announces Credit Facility Amendment
OMNI Energy Services Corp. announced that it has entered into an amendment to its senior secured credit facility maturing April 23, 2013, providing for a waiver of a violation of the Facility's fixed charge coverage requirement of 1.25 to 1.00 for the twelve month period ended September 30, 2009 and each and every event of default arising solely from the violation. In addition, the Company reduced the total available principal under the facility from $75.0 million to $56.0 million reflecting the principal payments previously made and applied to the term portion of the facility in the amount of $14.0 million. The Company also reduced the revolving credit capacity to $20.0 million from $25.0 million reflecting the Company's current business needs. As of November 12, 2009, the Company had no outstanding borrowings under this revolving credit facility and had $15.5 million of capacity of which $6.0 million was being utilized for standby letters of credit and other contingencies.
OMNI Energy Services Corp. Announces Seismic Drilling Contract in the Marcellus Shale
OMNI Energy Services Corp. announced that it has been awarded a contract with a seismic data acquisition company to perform a major seismic drilling project in the Marcellus Shale geographic region. The contract is expected to generate approximately $4 million in revenue. OMNI anticipates the contract will commence during the first quarter of 2010.
OMNI Energy Services Corp. Announces Initial Contract to Supply IMPACT Cleaning Technology
OMNI Energy Services Corp. announced it has signed a two-year contract to deploy three IMPACT automated cleaning units on an offshore production platform in the Gulf of Mexico. The Company expects the retrofit and installation to be completed within the next two months.
OMNI Energy Services Corp. Announces Favorable Judgment in Lawsuit
OMNI Energy Services Corp. announced that it has received a favorable judgment, dismissing a lawsuit filed by Robert H. Rhyne and Brent Trauth, the former owners of Preheat, Inc., which the Company acquired in February 2006. Mr. Rhyne and Mr. Trauth filed the lawsuit in federal court in the United States District Court for the Western District of Louisiana in Lafayette, Louisiana, against the Company, its directors, its Chief Operating Officer, its Chief Financial Officer, one of the Company's investment advisors and a principal of the investment advisor. The lawsuit sought, among other things, (i) a declaratory judgment that the Preheat purchase agreement executed in December 2005 is null because of alleged securities fraud and bad faith breach of the Preheat purchase agreement and that Mr. Rhyne's ERISA rights be clarified, (ii) injunctive relief to halt alleged securities disclosure violations by the Company and to remove three board members, and (iii) damages resulting from the nullification of the Preheat purchase agreement, which the plaintiffs claimed exceeded $85.0 million.
OMNI Energy Services Corp. Announces Contract Award
OMNI Energy Services Corp. announced that it has been awarded a significant project with a seismic data acquisition company. The project, expected to commence March 1, 2009, encompasses in excess of 5,000 holes, 85% of which are in the transition zone in Louisiana, and the balance being highland activity. The contract will generate approximately $2.5 million in revenue during the first and second quarter of 2009.
