NGAS restructures bonds

Lexington-based NGAS Resources, a natural gas exploration and production company, is restructuring its bonds.

The company announced Tuesday that it has entered into exchange agreements with the holders of its 6 percent bonds, $37 million in aggregate principal, due Dec. 15, 2010.

The holders have agreed to exchange the notes for $28.7 million in principal amount with 6 percent now due May 1, 2012, and $2.7 million in cash, 3 million common shares of stock and five-year warrants to buy 1.3 million common shares.

"In addition to reducing the face amount of our convertible debt and extending its maturity, the exchange creates the potential for gradually replacing the debt with equity at a premium to the current stock price," chief executive William S. Daugherty said in a statement.