Ivanhoe Energy founder provides $540,000 in additional working capital

By Caroline Salls

Pittsburgh, Dec. 30 – Ivanhoe Energy Inc.’s working capital has been augmented by a further $540,000 provided by founder Robert Friedland, according to a news release.

Ivanhoe said the new funds are in addition to a $2.2 million secured bridge loan provided by Friedland in October, bringing the principal amount of his short-term loan to $2.74 million.

The company announced on Dec. 12 that it did not expect to make the C$2.1 million cash interest payment due Dec. 31 on its 5.75% convertible unsecured subordinated debentures due June 30, 2016.

Ivanhoe has C$73.3 million of the convertibles outstanding.

The company also announced that its directors are considering selling all or part of its assets, a recapitalization, a debt restructuring or some combination of these measures.

These options are being reviewed as part of a strategy to address Ivanhoe’s “liquidity, funding requirements and capital structure,” the company said in a news release.

As previously disclosed, without additional financing there is doubt about the company’s ability to continue as a going concern.

Ivanhoe is a Vancouver, B.C.-based heavy oil exploration and development company focused on Canada, the United States and Ecuador.

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