July 19, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Trans Energy, Inc. (OTCBB: TENG) said it has entered into a forbearance agreement with its senior secured lender CIT Capital USA, Inc. On June 15, 2010 the company said it received a written notice of maturity / reservation of rights from CIT with respect to a certain credit agreement in the form of a senior secured revolving credit facility.

John G. Corp, president of Trans Energy, said, "This forbearance is an important step forward in refinancing our senior credit facility held by CIT.” He said that Trans believes that it will be successful in restructuring our senior credit facility and will secure the necessary capital to develop its assets.

The credit facility matured on June 15, 2010 and CIT advised Trans that no further loans will be made under the agreement and that all indebtedness under the agreement is due and payable.

On July 9, 2010, CIT and Trans executed a 120-day forbearance letter agreement after CIT rescinded its June 15, 2010 notice of maturity. CIT agreed to forebear from exercising its rights and remedies against the company and its property until October 29, 2010, subject to certain terms and conditions.

West Virginia-based Trans Energy is an oil and gas exploration and development company in the Appalachian Basin.

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