HOUSTON, Feb. 21, 2003 (PRIMEZONE) -- Trinity Energy Resources, (OTCBB:TRGC), in an update to shareholders published today on the company's web site -- www.trinityenergy.com -- from President & CEO Dennis Hedke, provided further guidance on the company's decision on January 31, 2003, to seek protection under Chapter 11 of the United States bankruptcy code.
"This filing came about after very careful deliberation with multiple advisors and likely participants in the future of the Company," Hedke told shareholders. He said the company had engaged the Houston law firm of Oppel, Goldberg & Saenz to represent it in these proceedings.
"A review of our last financial statement, dated November 14, 2002, and tied to our third quarter 10Q report, showed assets of $1,009,626, and debts of $1,619,031," Hedke continued. "While we've continued to work aggressively to reduce accounts payable since that filing, much work remains to be done in reducing overall outstanding obligations.
"Potentially high risk litigation against the company, and multiple current challenges reflected in our balance sheet, prompted us, in the interest of our shareholders, to seek this temporary protection under the courts. Although we will be operating under the constraints of the bankruptcy code, this temporary venue will permit us to initiate new directions for the company that will afford us significant operational flexibility.
"The filing places a stay on all such cases," Hedke explained. "Some of these cases have already been removed to bankruptcy court, and several others are expected to follow suit shortly. In any event, our strategies going forward will be focused on resolving certain business affairs of the company, as well as significant new financial objectives, without former litigious burdens."
Hedke reported that on February 18, 2003, the company filed mandatory schedules and a statement of financial affairs, and that it expected to file its initial report to the United States Trustee on, or about, February 21, 2003, to be followed by an Initial Debtor Conference on February 27, 2003.
"We have received numerous responses of support for strategies to exit from Chapter 11 at our earliest opportunity," said the CEO. "Some of these include near-term Debtor-In-Possession (DIP) financing, and others are more oriented toward long-term financing as a component of reorganization.
"Given that we filed under a Small Business category, our approximate timeline to file a Plan of Reorganization is pegged at 100 days from the original petition filing date, or approximately April 10, 2003. We will strive to meet or beat that deadline, but caution that multiple twists and turns are expected as we move toward the filing of our reorganization plan," he concluded.
This release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the company's current views with respect to future events that involve risks and uncertainties including uncertainties related to successful negotiations with other parties, oil and gas exploration risks, price volatility, production levels, closing of transactions, capital availability, operational and other risks, uncertainties and factors described from time to time in the company's publicly available SEC reports. In light of these risks and uncertainties, the forward-looking events described in this release might not occur.