Bellatrix Exploration Ltd (Canada) BXEFF

RE:Clown show at the PwC Canada Current Insolvency Website

[miketrike]

Kherson wrote:
As I had explained in an earlier post, Bellatrix did not meet the initial criteria to enter CCAA protection as they did not meet the requirements of the definition of "Debtor Company". 
Kherson

They defaulted on the $3 million payment which means all their debt is now considered owing to creditors, which is over $350 million. They do meet CCAA requirements. There are serious consequences to defaulting on a loan. I think they could have made spending/financing adjustments  to prevent the loan default, but I believe the plan was to sell the company and this was part of the plan.

"The CCAA is restricted to larger corporations, as a corporation must have amounts owing to creditors in excess of $5 million to be eligible to use the Act.