November 11, 2008
Baker Responds to Chapter 11 Bankruptcy Filing of Storm Cat Energy
Michael Baker Corporation (NYSE Alternext US:BKR) today provided the following response to the Chapter 11 bankruptcy filing of one of its Energy segment's managed services clients, Storm Cat Energy (USA).
"As indicated in Michael Baker Corporation's (the Company's) Form 10-Q for the quarter ended September 30, 2008, which was filed with the Securities and Exchange Commission on the morning of November 10, 2008, one of the Company's clients in its Energy segment's domestic managed service business has been past due on its accounts receivable balances and has been experiencing liquidity issues. The Company's total receivables and unbilled revenues due from this client, Storm Cat Energy, amounted to $8.3 million as of September 30, 2008. Subsequent to September 30, the Company received a payment from Storm Cat of $1.3 million. On the afternoon of November 10, Storm Cat filed a voluntary petition for reorganization under Chapter 11 of the United States bankruptcy code. The Company currently is assessing any potential impact of this action on the obligations owed to the Company and the Company's ongoing business with Storm Cat."