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): April 13, 2009
The
Meridian Resource Corporation
(Exact
Name of Registrant as Specified in Charter)
|
Texas
|
1-10671
|
76-0319553
|
|
(State
or Other Jurisdiction
of
Incorporation)
|
(Commission
File Number)
|
(IRS
Employer
Identification
No.)
|
1401
Enclave Parkway, Suite 300
Houston,
Texas 77077
(Address
of Principal Executive Offices) (Zip Code)
281-597-7000
(Registrant’s
telephone number, including area code)
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
2.04
|
Triggering
Events That Accelerate or Increase a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet
Arrangement.
|
(a) Under
the Amended and Restated Credit Agreement, dated December 23, 2004, among The
Meridian Resource Corporation (the “Company”, “us”, “we” or “our”), the several
banks, financial institutions and other entities from time to time parties
thereto (collectively, the “Lenders”), and Fortis Capital Corp., as
administrative agent for the Lenders (the “Credit Facility”), the next scheduled
redetermination of our borrowing base will be effective April 30,
2009. On April 13, 2009, the Lenders notified us that, as of the
effective date of April 30, the borrowing base will be reduced to $60
million. As of the date hereof, we have outstanding indebtedness of
$95 million under the Credit Facility. The Credit Facility provides
that outstanding borrowings in excess of the borrowing base must be repaid
within 90 days after the redetermination, and we do not currently have
sufficient cash available to repay the shortfall.
The
borrowing base is determined at the discretion of the Lenders, based primarily
on the value of our proved reserves. The value of our proved reserves
has been significantly reduced during the last several months due to the
precipitous decrease in the prices of oil and natural gas.
We are
currently in discussions with the Lenders regarding alternative repayment terms,
amortization payments from cash flow, obtaining waivers on the current events of
default that have been previously disclosed, providing additional security and
entering into forbearance agreements. We cannot provide any assurance
that our Lenders will agree to any such arrangements.
We are
also considering other options for repayment, including the sale of strategic
and nonstrategic assets or obtaining capital from other sources. We
may not be able to sell assets on terms that we consider advantageous to us and
our shareholders, and capital on acceptable terms may not be available from
other sources. Our inability to obtain concessions from our Lenders
or to execute other alternatives would have a material adverse effect on our
results of operations and financial condition.
SIGNATURE
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.
The Meridian Resource
Corporation
(Registrant)
By: /s/ Lloyd V.
DeLano
Lloyd V. DeLano
Senior Vice President
and Chief Accounting
Officer
Date: April
17, 2009