News: Deal's Blockedhttps://www.bloomberg.com/news/articles/2016-08-29/twin-butte-bondholders-said-to-prevent-sale-of-company-in-vote
A group of dissident bondholders succeeded in blocking Twin Butte Energy Ltd.’s plans to sell itself, according to a person with knowledge of the matter.
The company failed to get two-thirds of bondholders voting to approve the sale to a group consisting of Hong Kong and Canadian-domiciled Reignwood Group Co. and Horizon Holding Group at a special meeting Monday in Calgary, according to the person who asked not to be identified as the meeting was confidential.
Twin Butte faced opposition from some of its convertible-debt holders after it agreed in June to sell itself in a deal that would give equity holders C$22.4 million ($17.2 million), while the convertible-debt holders were to receive C$12 million. The bondholders proposed a debt-for-equity swap that would give them a higher payout, but it was rejected by Reignwood.
The Calgary-based oil and gas producer urged stakeholders to support the plan in an Aug. 25 statement, saying that the dissident group could put the company into default on its credit line if it achieved its goal of blocking the deal.
Rob Wollmann, Twin Butte’s chief executive officer, didn’t immediately respond to requests for comment on Monday.
Peters & Co., one of the advisers on the deal, provided a fairness opinion and recommended that shareholders approve, but it had no explicit recommendation for bondholders. Canaccord Genuity Group Inc., hired by Twin Butte as a financial advisor, also provided a fairness opinion and said it was fair to bondholders.