LGX Oil + Gas Inc ROAOF

Could OIl be liable for ONSL debts and liabilities

[tano]

Does anyone know if OIL could be held legally liable for any of the debts and other financial liabilities of ONSL in the event ONSL were to be liquidated and the sale of its assets were not sufficient to pay its creditors in full.

The reason I ask is that some posters have talked about the possibility that OIL could get a cash infusion and bid for some or all of ONSL assets in the event of a ONSL liquidation and that, in such a scenario, current OIL shareholders might retain an equity stake in the recapitalized OIL, subject to some dilution.

I appreciate that OIL and ONSL are two separate legal entities, and that under normal circumstances, one legal entitiy cannot be held liable for the financial obligations of another legal entity. However, does this rule apply in a case involving a wholly-owned subsidiary and its parent company? Can the obligations of the wholly-owned subsidiary become those of the parent company, in a liquidation scenario, for example? More specifically, with regards to OIL and ONSL, was OIL a party to any of the contracts signed by ONSL, either as a guarantor or in some other capacity? What about OIL's own financial obligations? Does anyone know what and how much they are? TIA