Bellatrix Exploration Ltd (Canada) BXEFF

Alberta eyes 'Liquidity Package' for Oil & Gas Companies

[RichyRich$]

https://business.financialpost.com/commodities/alberta-eyes-liquidity-package-for-oilpatch-from-ottawa-as-opec-deal-underwhelms Alberta eyes 'liquidity package' for oilpatch from Ottawa as OPEC+ deal underwhelms Hopes for as much as $30 billion to help sector survive double hit Gabriel Friedman April 13, 2020 5:41 PM EDT Albertas Minister of Energy Sonya Savage expects the federal government to announce a liquidity package this week that would help oil and gas companies in her province survive through the severe price collapse caused by the COVID-19 global pandemic. I know theyre working on something thats quite significant, the minster told the Financial Post on Monday. Numbers that weve looked at, that the (Alberta) premier (Jason Kenney) has looked at, is we need $20 billion to $30 billion coming into our (oil and) gas sector, inclusive of the service sector and the drillers thats the kind of program were looking at if were going to get to the other side. Describing it as an unprecedented situation, Savage said she has been in close contact with federal Minister of Finance Bill Morneau as his office attempts to devise a package that will provide credit and liquidity to financially stretched companies in her province. She added the federal government is still studying the best way to get credit and liquidity to companies with numerous options under consideration. Chris Cox with Raymond James said it is unlikely that any banks would force Canadian oil producers into bankruptcy by calling in loans. Quite frankly, I dont think the banks want to own these assets themselves, Cox said.

[RichyRich$]

It says TO BE ANNOUNCED THIS WEEK! This could be Bellatrix's saviour if no buyout. Thank God they were able to keep delaying CCAA and didn't prematurely accept a low ball offer like Pengrowth last November. This liquidity package can also be used as a negotiation tool with potential buyers. They can now threaten "We want X Amount" or else we'll take a liquidity package from

[pennydredful]

According    to    rumours    on   the  street   they  may  have   already   signed    a  letter   of    intent     to  accept     a  low    ball   offer   .  Do

[mjhayman]

How low are we talking, like not a penny for shareholders? If this company doesn't even try for a line of credit which is coming very very very soon I would be so utterly shocked by the greed of this management!!!! 

[rad10]

Hi penny - what's the scoop?  PWC monitor is tight lipped. No update to the CCAA reporting. All the best.

[pennydredful]

Check     your    in  box.    As    you   aware    current   drop   dead    date   is    June   1st     ,   40  days    away    .   Not  sure  

[RichyRich$]

Penny... the Total Debt apx C$375M is clearly in Canadian Dollars in the last Quarter report. Total Debt includes all level of liens etc.

[pennydredful]

yes    they    convert   the   D.I.P.    financing   ,  the   2nd  lien  notes  and   the   third    lien   notes  ALL  PAYABLE   in US    $$$$     to    Canadian   

[RichyRich$]

Penny... there is no rumour on the streets. Everyone is tight lipped. No one is giving any inside info. Also... You do realize that the banks/lenders own 83% of the common shares. So if they accept a low ball, the bank/lenders would lose their $110 Million in the common shares that they swapped for debt in early 2019. Unlikely they would be willing to lose $110 Million. They'd sooner relist

[pennydredful]

People    that    swapped    for  shares   were  holders  of   the   Canadian  convertible  debentures      and    holders    of    2    US    pay    note    issues. 

[RichyRich$]

I verified with the PWC monitor that the restructuring in March - May 2019 was the Bank/Lenders swapping $110M for 83% ownership of the common shares. The monitor verified that if the common shares go to zero, the bank/lender loses $110M. No recourse. Banks won't chose to lose $110M when Bellatrix is now banking cash and not accumulating debt. Bellatrix is able to sustain right now with AECO

[mjhayman]

Hey Richy,  I don't think they legally went into Bankruptcy, I think we should lawyer up if they sold for zero. What are your feelings on recourse if Penny is in fact correct?