TheMustangKid wrote: Scottie99
Am I reading this wrong because my first impression is that they are looking into changing the deal with the purchaser. All it's saying is that the lenders are basically giving them permission to renegotiate the deal no?
The Lenders are just saying that they won't call in the loans and will co-operate with yet another extension. It also looks as though they are requiring $5 million dollars by Sept 08 in order to give said extension which will be interesting to see if the purchaser is willing to put up the extra cash. This will show just how interested they are in the purchase of the company.
Either way I think it buys us more time which I think is the most important part. Like someone else said before hopefully they keep extending like this all the way until 2017 when the oil prices are forcast to recover significantly.
Please let me know if I'm wrong as this is just my interpretation of the release.
Hang in there everyone, Like Scottie said there feeling the heat of the slow cooking, and things are just starting to get juicey.
GLTA
Twin Butte Announces Agreement with the Company's Lenders
Monday, August 15, 2016
Twin Butte Announces Agreement with the Company's Lenders
07:30 EDT Monday, August 15, 2016
CALGARY, Aug. 15, 2016 /CNW/ - (TSX: TBE) – Twin Butte Energy Ltd. ("Twin Butte" or the "Company") announces that it has entered into an agreement with its senior lenders pursuant to which such lenders have consented to the Company entering into an amending agreement to its arrangement agreement with Reignwood Resources Holding Pte. Ltd. (the "Purchaser") on August 9, 2016 and waived the event of default under the Company's credit agreement announced on August 9, 2016 related to the entering into of such amending agreement without prior lender consent.
Such lenders have also agreed to continue to forbear from exercising their rights and remedies for certain other prior defaults under Twin Butte's credit agreement, provided that the Company's previously announced plan of arrangement (the "Arrangement") in respect of the Company and its securityholders and involving the Purchaser and Reignwood Resources Trading UK Limited, closes by September 26, 2016. The continuation of such forbearance is conditional upon, among other things, the deposit by the Purchaser, in escrow, of $5 million by September 8, 2016, in the event that securityholder and court approval for the Arrangement has been received on or before certain dates. The escrowed amount will be used to fund the aggregate consideration payable by the Purchaser pursuant to the Arrangement.
Twin Butte's annual and special meeting of securityholders is scheduled to be held at 9:00 a.m. (Calgarytime) on August 29, 2016 to consider, among other things, the approval of the Arrangement. Securityholders who have not voted in respect of the Arrangement or who wish to change their vote may do so by following the instructions set forth on the proxy or voting instruction form provided to them. Securityholders may revoke a previously voted proxy with an instrument in writing, including another proxy, signed by the securityholder and delivered care of Twin Butte to Computershare Trust Company of Canada. In order to revoke a proxy previously delivered by an intermediary or its agent, on their behalf, beneficial securityholders should carefully follow any revocation instructions set forth on the voting instruction form provided to them by their intermediary or agent. The board of directors of Twin Butte unanimously recommends that Twin Butte securityholders vote FOR the Arrangement. Securityholders are encouraged to read the many reasons to vote FOR the Arrangement, including the potential negative impacts to the Company should the Arrangement not proceed. Detailed information can be found on Twin Butte's SEDAR profile at www.sedar.com.
Questions concerning voting may be directed to:
Laurel Hill Advisory Group
North American Toll-Free Number: 1-877-452-7184
Collect Calls Outside North America: 416-304-0211
Email: assistance@laurelhill.com