Business Context and Reporting Period
This Form 8-K was filed by Energy Services of America Corporation on June 15, 2013. The report addresses a material definitive agreement involving the company and its subsidiaries (C.J. Hughes Construction Company, Inc., Contractors Rental Corporation, Nitro Electric Company, Inc., and S.T. Pipeline, Inc.) with United Bank, Inc.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt levels, or liquidity ratios. The document focuses exclusively on the status of a credit facility default and the associated forbearance agreement.
Material Changes
The primary material change reported is the extension of a forbearance agreement originally entered into on November 28, 2012. The company acknowledged a default under two credit facilities with United Bank, Inc. On June 15, 2013, the parties amended the agreement to extend the period for the Registrant to raise funds and perform obligations until July 31, 2013. All other provisions remain substantially the same as the prior agreement.
Outlook, Risks, and Contingencies
- Risk of Default: The company remains in default under its credit facilities with United Bank, Inc.
- Liquidity Contingency: The company has until July 31, 2013, to raise funds and fulfill obligations to avoid the bank exercising its rights and remedies.
- Management Commentary: The filing states that the description of the agreement is qualified in its entirety by the full text of the amendment filed as Exhibit 10.1.
Investor Verification Checklist
- Verify the full terms of the Amendment to Forbearance Agreement filed as Exhibit 10.1.
- Confirm whether the company successfully raised funds or performed obligations by the July 31, 2013 deadline.
- Review subsequent filings to determine if United Bank, Inc. exercised any rights or remedies following the expiration of the forbearance period.
- Assess the total outstanding debt under the two credit facilities mentioned in the default acknowledgment.