Twin Butte Energy Ltd TBTEF

RE:Who Knows About Closing versus Effective Date Matters?

[Oldfart74]

PetroExplorer wrote: Getting back on topic, we need to understand about this deal, and when the purchaser will actually become entitled to the cashflow from the company, that they stole from the shareholders, thanks to the Board of Directors, not filing for CCAA. 

I believe we are currently in an interim period, where cashflow from the production, should be credited to the Receiver's account, but I could be mistaken.  If this isn't the case, then the purchaser could actually have paid down a portion of their purchase price, with the cashflow from the production, while waiting for the deal to close.

The Receiver's Report deal summary says:

Effective Date: December 1, 2016

Anticipated Closing Date: January 31, 2017

Outside Closing Date: February 28, 2017

30 Day Closing Date Extension: March 31, 2017 (if regulatory approval not obtained by February 28, 2017)

So who gets the cashflow from the company, prior to the Closing Date?  Hopefully that still remains with the Receiver, for distribution to the unsecured creditors?  Perhaps if the closing drags on long enough, there might be enough money earned, to distribute something to shareholders?

Effective date - all income and expenses are allocated to the purchaser as of the Effective Date (clause 7.1 of the PSA)