Southern Pacific Resource Corp STPJF

SOUTHERN PACIFIC CREDITORS FILE RECEIVERSHIP APPLICATION CAL

[birdie22]

SOUTHERN PACIFIC CREDITORS FILE RECEIVERSHIP APPLICATION CALGARY, Alberta – May 28, 2015 – Southern Pacific Resource Corp. (the “Company” or “Southern Pacific”) announced today that the Company’s First Lien Term Loan Creditors have filed an application with the Court of Queen’s Bench of Alberta to place the Company into Receivership and appoint a Receiver to manage the Company’s affairs. PwC Canada (“PWC”) had been appointed by the Court as monitor under the existing CCAA proceedings and has been proposed as the Receiver in order to provide continuity to the insolvency process. All of the materials filed with the Court, including the Initial and subsequent Orders under the CCAA and the application for Receivership, are available on the PWC’s website (www.pwc.com/car-stp). The application is scheduled to be heard in Court on Monday, June 1, 2015 at 8:30 AM MT. Southern Pacific’s Board of Directors has reviewed and will not oppose the application. Southern Pacific will not be seeking to extend the CCAA stay of proceedings, scheduled to expire June 1, 2015. It is also the intent of all the existing members of the Board of Directors to resign immediately in the event of a successful appointment of a Receiver. The effect of a Receivership will make any recovery for unsecured creditors or shareholders very unlikely. For further information, please contact: Byron Lutes, President & CEO Howard Bolinger, CFO 403-269-1529 403-269-2640 [e-mail] [e-mail]

[bambus]

Wow...that's it then...our chances went from very slim to none... Time to put those loses behind and move on... Well, this is the worse scenerio for unsecured shareholders...everything is gonna go for pennies now. Cheers 

[monzie]

Geez I wonder how low the offers were if receivership turned out to be the best course of action.

[birdie22]

Monitors 5 th Report, Look at page 12 item 9, The bids they recieved where not sufficent to settle the debt owed to Fisrt Lien. https://www.pwc.com/en_CA/CA/car/stp/assets/stp-030_060115.pdf

[nikehercules]

It must have been well short of the $130 million USD owed to the First Lien. If it was close I'd expect the Credit Suisse to cut and run. A running plant is more valuable than one that's been mothballed for a couple years with -40 degree winters along with all the restart risk and cost. Plus, Senlac production will continue to sink without any new wells. On top of that you've got to