Business Context and Reporting Period
Company: Energy Services of America Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: June 5, 2013
Reporting Period: The filing addresses an event occurring on June 5, 2013, regarding an extension of a prior agreement.
Key Financial Metrics
This filing does not contain specific financial performance data such as revenue, profit, cash flow, margins, or liquidity ratios. The document focuses exclusively on a material definitive agreement regarding debt obligations.
Material Changes
- Debt Default Status: The Registrant and its subsidiaries (C.J. Hughes Construction Company, Inc., Contractors Rental Corporation, Nitro Electric Company, Inc., and S.T. Pipeline, Inc.) acknowledged default under two credit facilities with United Bank, Inc.
- Forbearance Extension: The company entered into an amendment to a Forbearance Agreement originally executed on November 28, 2012. This amendment extends the period for the Registrant to raise funds and perform obligations until June 15, 2013.
- Terms: The remaining provisions of the amended agreement are substantially the same as the original agreement.
Guidance, Outlook, and Risks
- Management Commentary: The filing states that the company is working to raise funds and perform obligations under the forbearance terms.
- Risks and Contingencies: The primary risk is the existing default status on credit facilities. The extension provides a temporary reprieve from the lender exercising rights and remedies, but the default condition remains acknowledged.
- Unusual Items: The filing references a prior 8-K filed on November 29, 2012, disclosing the initial default and forbearance.
Investor Verification Checklist
- Verify the specific terms of the "Amendment to Forbearance Agreement" filed as Exhibit 10.1.
- Confirm the status of the two credit facilities with United Bank, Inc. and whether the default has been cured by the June 15, 2013 deadline.
- Review subsequent filings to determine if the company successfully raised the required funds or if the lender exercised remedies after the extension expired.
- Check for any additional defaults or amendments to the credit facilities not detailed in this summary.