0000943374-13-000346.txt : 20130621 0000943374-13-000346.hdr.sgml : 20130621 20130621113423 ACCESSION NUMBER: 0000943374-13-000346 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20130615 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130621 DATE AS OF CHANGE: 20130621 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Energy Services of America CORP CENTRAL INDEX KEY: 0001357971 STANDARD INDUSTRIAL CLASSIFICATION: WATER, SEWER, PIPELINE, COMM AND POWER LINE CONSTRUCTION [1623] IRS NUMBER: 204606266 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32998 FILM NUMBER: 13926243 BUSINESS ADDRESS: STREET 1: 2450 FIRST AVENUE CITY: HUNTINGTON STATE: WV ZIP: 25703 BUSINESS PHONE: 304-528-2791 MAIL ADDRESS: STREET 1: 2450 FIRST AVENUE CITY: HUNTINGTON STATE: WV ZIP: 25703 FORMER COMPANY: FORMER CONFORMED NAME: Energy Services Acquisition Corp. DATE OF NAME CHANGE: 20060330 8-K 1 form8k_forbearagramend61513.htm FORM 8-K form8k_forbearagramend61513.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): June 15, 2013

Energy Services of America Corporation
(Exact Name of Registrant as Specified in its Charter)

Delaware
(State or Other Jurisdiction
of Incorporation)
001-32998
 (Commission
File Number)
20-4606266
(I.R.S. Employer
Identification No.)


100 Industrial Lane, Huntington, West Virginia
 
25702-9694
(Address of Principal Executive Offices)
 
(Zip Code)

Registrant’s telephone number, including area code:                                                                                     (304) 399-6315

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[  ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
[  ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
[  ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
[  ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
   


 
 

 


Item 1.01
Entry into a Material Definitive Agreement

On November 28, 2012, Energy Services of America Corp. (the “Registrant”) and its subsidiary corporations, C.J. Hughes Construction Company, Inc., Contractors Rental Corporation, Nitro Electric Company, Inc. and S.T. Pipeline, Inc. (collectively, the “Obligors”) entered into a forbearance agreement with United Bank, Inc., whereby the Obligors acknowledge that they are in default under the terms of two credit facilities between United Bank, Inc. and the Registrant and United Bank, Inc. has agreed to forbear from exercising certain of its rights and remedies under the loan agreements and related documents.  On November 29, 2012, the Registrant filed with the SEC a Form 8-K disclosing that it entered into the Agreement.  The Forbearance Agreement was subsequently amended.

On June 15, 2013, the parties entered into an extension to the forbearance agreement which extends the period under which the Registrant may raise funds and perform certain of its obligations under the Forbearance Agreement until July 31, 2013.  The remaining provisions of the new forbearance agreement are substantially the same as those in the Agreement.

The foregoing is not a complete description of the terms of the new forbearance agreement and such description is qualified in its entirety by the new forbearance agreement which is filed as exhibit 10.1 to this Form 8-K.

Item 9.01
Financial Statements and Exhibits

(a)
Financial Statements of businesses acquired.
 
Not Applicable.
 
(b)
Pro forma financial information.
 
Not Applicable.
 
(c)
Shell Company Transactions.
 
Not Applicable.
 
(d)
Exhibits.
 
10.1  Amendment to Forbearance Agreement, dated June 15, 2013
   



 
 

 


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 
ENERGY SERVICES OF AMERICA CORPORATION
   
   
DATE:  June 21, 2013
By:      /s/ Larry Blount                                                      
 
Larry Blount
 
Chief Financial Officer
   

EX-10.1 2 ex101_61513.htm FOREBEARANCE AGREEMENT AMENDMENT ex101_61513.htm
SECOND AMENDMENT TO FORBEARANCE AGREEMENT


This Second Amendment to Forbearance Agreement is made and entered into effective this 15th day of  June, 2013, by and between United Bank, Inc., a West Virginia banking corporation, party of the first part, hereinafter called “Lender”, Energy Services of America Corporation, a Delaware corporation, party of the second part, hereinafter called “Company” or “Borrower”, and C. J. Hughes Construction Company, Inc., a West Virginia corporation, Contractors Rental Corporation, a West Virginia corporation, Nitro Electric Company, Inc., a West Virginia corporation, and S. T. Pipeline, Inc., a West Virginia corporation, parties of the third part, hereinafter called “Guarantors”, the Company and Guarantors sometimes hereinafter collectively called “Obligors”.

RECITALS

A.  Lender has extended two credit facilities in favor of Borrower, the first, an Eighteen Million Dollar ($18,000,000) revolving line of credit (“RLOC”) all of which is set forth in a Loan Agreement dated July 27, 2011 (“RLOC Loan Agreement”) as amended by Agreements dated January 31, 2012, May 10, 2012 and July 25, 2012 and evidenced by a note dated July 27, 2011 (“RLOC Note”), and the second, an Eleven Million Three Hundred Thousand Dollar ($11,300,000) term loan (“Term Loan”), all of which is set forth in a Loan Agreement dated July 27, 2011 (“Term Loan Agreement”) as amended by Agreements dated January 31, 2012, May 10, 2012 and July 25, 2012 and evidenced by a note dated July 27, 2011 (“Term Note”).  The RLOC Note and the Term Note are hereinafter referred to as the "Notes".  The RLOC Loan and the Term Loan are hereinafter referred to as the "Indebtedness".

B.  The parties have previously executed a Forbearance Agreement dated May 31, 2013, as amended by agreement dated June 5, 2013.

C.  Paragraph 6(e)(5) of the Forbearance Agreement required ESA to have raised not less than Six Million Dollars in equity with One Million of the funds to be used to reduce the principal balance of the Indebtedness.

D.  Obligors have requested Lender to change the period of time in which to raise the funds and make the principal payment to July 31, 2013 and Lender by this Agreement has agreed to do so.

E.  Capitalized terms used herein which are not otherwise defined in this Agreement shall have the meaning set forth for them in the Loan Documents.

NOW, THEREFORE, in consideration of these premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and intending to be legally bound hereby, the parties hereby agree as follows:

1.           Paragraph 6(e)(5) of the Forbearance Agreement shall be amended by substituting July 31, 2013 in the place and stead of June 15, 2013.
 

 
 
 

 
2.           The Parties further agree that until such time as the Obligors have received paid subscriptions for a minimum of Three Million Dollars ($3,000,000.00) all monies shall be held in escrow by the Obligors. Once Obligors have received a minimum of Three Million Dollars ($3,000,000.00) in paid subscriptions, One Million Dollars ($1,000,000.00) shall be paid to Lender as a principal reduction as required by the Forbearance Agreement with the remaining monies to be made available as working capital. Notwithstanding the above, Obligors acknowledge that not less than Six Million Dollars ($6,000,000.00) in equity shall be raised on or before July 31, 2013.

3.           Other Terms and Conditions.  All other terms and conditions of the Forbearance Agreement shall remain the same.

IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto, have caused this Forbearance Agreement to be duly executed by their duly authorized officers as of the date first written above.

 
LENDER:
   
 
United Bank, Inc.
 
a West Virginia banking corporation
   
 
By: /s/ Andrew Dawson
 
Name: Andrew Dawson
 
Title: Assistant Vice President
   

 
BORROWER:
   
 
Energy Services of America Corporation
 
a Delaware corporation
   
 
By: /s/ Douglas Reynolds
 
Name: Douglas Reynolds
 
Title: President and Chief Executive Officer
   

 
GUARANTORS:
   
 
C.J. Hughes Construction Company, Inc.
 
a West Virginia corporation
   
 
By: /s/ Douglas Reynolds
 
Name: Douglas Reynolds
 
Title: President
   


 
 

 
   
 
Contractors Rental Corporation
 
a West Virginia corporation
   
 
By: /s/ Douglas Reynolds
 
Name: Douglas Reynolds
 
Title: President
   

 
Nitro Electric Company, Inc.
 
a West Virginia corporation
   
 
By: /s/ Douglas Reynolds
 
Name: Douglas Reynolds
 
Title: Chairman
   

 
S.T. Pipeline, Inc.
 
a West Virginia corporation
   
 
By: /s/ Douglas Reynolds
 
Name: Douglas Reynolds
 
Title: President