ACHESON, Alberta, April 29, 2020 (GLOBE NEWSWIRE) — ENTREC Corporation (“ENTREC” or the “Company”) announced today that it will not make the scheduled interest payment of $926,500 due on April 30, 2020 on its 8.5% unsecured convertible debentures (“Unsecured Debentures”). There are $21.8 million principal of Unsecured Debentures outstanding with an annual coupon rate of 8.50%, payable semi-annually, and maturing on June 30, 2021. The Unsecured Debentures trade on the Toronto Stock Exchange under the symbol ENT.DB. If unpaid, ENTREC will become in default of its obligations pursuant to the Unsecured Debentures on May 14, 2020. There can be no assurance that the interest payment on the Unsecured Debentures will be made by May 14, 2020 or at all.
ENTREC’s ability to make payments and advances on any of its commitments or other liabilities is subject to the contractual restrictions contained in its asset-based lending facility (“ABL Facility”). The ABL Facility provides for a first charge security interest on substantially all of ENTREC’s assets. ENTREC is currently not in compliance with certain of its covenants under the ABL Facility including its financial covenant to maintain a minimum excess borrowing capacity of $15.0 million. While the lenders have reserved all of their rights under the ABL Facility to accelerate repayment due to the event of default incurred, the lenders have not accelerated such repayment to date. A failure to resolve these events of default could result in an acceleration of the ABL Facility’s repayment. If repayment of the ABL Facility were to be accelerated, there can be no assurance that ENTREC’s assets would be sufficient to repay in full that indebtedness. As a result, there is material uncertainty related to these conditions that raise substantial doubt about whether ENTREC will continue as a going concern, and therefore, whether ENTREC will realize its assets and settle its liabilities in the normal course of business. Further, ENTREC may find it necessary to obtain additional debt or equity to support ongoing operations but there can be no assurance that such additional debt or equity will be available.About ENTRECENTREC is a heavy haul transportation and crane solutions provider to the oil and natural gas, construction, petrochemical, mining and power generation industries. ENTREC is listed on the Toronto Stock Exchange under the symbol ENT.Forward-Looking StatementsThis press release may contain, without limitation, statements concerning possible or assumed future operations, performance or results preceded by, followed by or that include words such as “believes”, “expects”, “potential”, “anticipates”, “estimates”, “intends”, “plans” and words of similar connotation, which would constitute forward-looking statements. Forward-looking statements are not guarantees. The reader should not place undue reliance on forward-looking statements and information because they involve significant and diverse risks and uncertainties that may cause actual operations, performance or results to be materially different from those indicated in these forward-looking statements. Except as may be required by Canadian securities law, ENTREC is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors. These cautionary statements expressly qualify all forward-looking statements in this press release.For further information, please contact: John M. Stevens – President & CEO
Telephone: (780) 960-5625Jason Vandenberg – CFO
Telephone: (780) 960-5630 
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