HOBBS, N.M. (AP) – A company that operates a crop fertilizing mine near Carlsbad is facing financial problems due to falling prices.
The Hobbs New-Sun reports that the Denver-based Intrepid Potash Inc. has laid off more than 30 employees in Carlsbad and it has seen its stock value plummet.
The company recently reported its third straight quarterly loss and said low potash prices could cause a breach in its loan covenants.
Chief Executive Officer Bob Jornayvaz said in a conference call that falling prices per ton of potash mean the company won’t be able to comply with debt covenants revised in January. He said the company is working with lenders on an updated agreement.
He says Intrepid has more than 850 employees and doesn’t expect to drain its balance this year.