Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Joe [Lackey] with Wells Fargo Wachovia.
Joe [Lackey] – Wells Fargo Wachovia
First question regarding the 8-K filed on February 4 to amend the credit agreement. I believe the cutoff for lenders to consent was on February 10. Was the amendment approved by the lenders?
Richard L. Kinzel
We have extended that date. We continue in discussions with a lender. That date has been extended. Right now we’re looking at either late this week or early next week so we’re still in discussions.
Joe [Lackey] – Wells Fargo Wachovia
Can you give any sort of update on your expectations of whether or not you’ll be in violation of the distribution provision at the end of ’09?
Brian C. Witherow
At this time the season, we don’t have any visibility on the season. We’re closed. As the season begins to unfold we can evaluate that as we’ve reported in the past, the particular covenant that governs distributions steps down to 4.75 times. I will tell you based on the results that we achieved this year, we are right at that number, so as Dick had mentioned, we’re planning for the season and the season will unfold and we’ll have to monitor that as we go through the season.
Joe [Lackey] – Wells Fargo Wachovia
Can you give a quick recap of alternatives that the Board is reviewing in regards to distribution, debt repurchase, that sort of thing, and kind of give s some sort of balance that the Board is looking at in regards to the distribution specifically i.e. for example, would the Board tend to be more aggressive to give you some more cushion should the distribution need to be revised? Any sort of discussion around that?
Peter J. Crage
Sure, we’re looking at a number of alternatives. We’re looking at obviously our cash flow. We have strong cash flows and cash flows before distribution are an item that is a real asset to us to take down debt levels so we’re evaluating that. We’re also evaluating some opportunities to sell some non-earning assets. We’ve talked about the Canadian land in the past. As you know, this is a difficult credit market so it takes time to put together a deal and finalize a deal. But we’re looking at those things as well. We have a variety of alternatives. We continue to discuss them. We continue to evaluate them, and see what we can do. But really everything at this point is on the table to make sure that we were comfortable with our debt levels for the future.
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