Connacher Oil & Gas Ltd CLLZF

Connacher Oil and Gas Ltd CLLZF:Grey Market - News Alert

[G1945V]

Connacher Enters Into Support Agreement With Lenders and Obtains Court Authorization to Commence Sale and Investment Solicitation Process. (SISP)

"In light of the Company's improved financial performance resulting from cost efficiencies realized during the CCAA process and the improvement in oil prices, Connacher believes that it is appropriate to exit from CCAA in the short term, either through a third party sale or investment transaction or a creditor-driven restructuring. Concurrent with the closing 

of the sale of the sliding scale royalty to Burgess Energy Holdings, L.L.C. on January 30, 2018, Connacher repaid in full its DIP financing in the amount of US$16,521,164. The Company's cash balances as at March 26, 2018 were C$57,626,382."

 

"The key features of the Credit Bid Transaction include:

(i) formation of a new entity ("Newco") to acquire all or substantially 

all of Connacher's assets; 

(ii) assumption by Newco of Connacher's post-CCAA filing trade payables; (iii) offers of employment being made by Newco to all of Connacher's employees; 

(iv) entry by Newco into a new senior secured facility (the "Newco Senior Secured Facility"); and 

(v) distribution of the shares of Newco and the obligations under the Newco Senior Secured Facility to the existing first lien lenders on the terms set out in the Support Agreement and related exhibits."

https://www.newswire.ca/news-releases/connacher-enters-into-support-agreement-with-lenders-and-obtains-court-authorization-to-commence-sale-and-investment-solicitation-process-678235923.html
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No mention what happens to the shareholders.???

G1945V