Lightstream Resources Ltd. LSTMF

Deal is DONE 100% of assets go to Ridgeback

[oilman53]

Lightstream Announces Closing of Asset Sale to Ridgeback Resources CALGARY, ALBERTA--(Marketwired - Dec. 29, 2016) - Lightstream Resources Ltd. (the "Company" or "Lightstream") announces that further to our press release dated December 8, 2016, the previously announced sale of substantially all of the assets and business of the Company (the "Sale Transaction") to Ridgeback Resources Inc. ("Ridgeback") closed today. The Sale Transaction represents the outcome of the sale process carried out by the Company as part of its restructuring proceedings under the Company Creditors' Arrangement Act commenced in September 2016. As a result, Ridgeback, a new private company owned by former holders of the Company's 9.875% second lien secured notes due 2019 ("Secured Notes"), now owns and operates the former assets and business of Lightstream. Ridgeback has secured a new $400 million borrowing base bank facility with a syndicate of lenders comprising the five large Canadian banks, which provides in excess of $100 million of available liquidity. In addition, Ridgeback has raised additional capital through US$39.3 million of Second Lien Notes maturing in 2020 that have been purchased by certain of Ridgeback's shareholders and their affiliates. Given current economic conditions, Ridgeback is planning to commence a new operated drilling program in January 2017. Effective January 1, 2017, all notices, correspondence, invoices or payments in respect of Lightstream, LTS Resources Partnership or Bakken Resources Partnership should now be issued in the name of Ridgeback Resources Inc. at the same mailing address. Notices and other documentation are being issued to partners and service providers in respect of agreements affected by the sale transaction. All of the directors of Lightstream have resigned effective today. Mr. John D. Wright (formerly the President and Chief Executive Officer of Lightstream) has been appointed to the new Board of Directors of Ridgeback. The management team of Lightstream has resigned from Lightstream and been hired by Ridgeback, together with all other Lightstream personnel who also moved over to Ridgeback today. Lightstream will no longer have any operating assets or active business. The court-appointed Monitor will assist with the wind-down of the Company's remaining affairs. Lightstream Resources Ltd. is formerly an oil and gas exploration and production company focused on light oil in the Bakken and Cardium resource plays.

[BluSky23]

Oilman or others, I have a few questions. Since Ridgeback forced the resignation of the Lightstream board, funding the wind down, and excess funds go back to Ridgeback, did they buy assets or did they buy the whole Lightstream business. ALL employees went to new company. If they bought the whole company, why didn't they offer to buy all the shares at a nominal amount of .0001? News says that

[oilman53]

In this case the judge gave, or allowed,  ALL the assets of the former Lightstream to the holders of the first lien debtholders (Ridgeback)  The judge dismissed the lawsuit of the second lien debtholders and made no provision for the common shareholders of Lightstream as ALL debts would have to have been tkne care before common shareholders would see anything (Tha's the Law, when

[reefsandals4eva]

I thought they bought all assets and business of lightstream, not just all assets.  They were sold as a business, not parted out.  That's how i interpreted it,  but honestly i do see what you're saying I just think you are looking at it as a bankruptcy not as a business bought in bankruptcy protection.

[Pancho2]

Yes 100% of Lightsteam will be transferred to Ridgeback but the old Shareholders will own 2.25% of this new Ridgeback Company. The Secured Notes purchased a considerable amount of the Assets in LTS and will be given shares on a proportional basis in Ridgeback -------------------------------------------------------------------------------------- The Court of Queen's Bench of Alberta has

[BluSky23]

You don't know this part. It's a new deal, maybe SH's get the unsecured portion in lieu of options. Maybe we get 5%. Can hope.