Entrec files CCAA case to implement options identification process

By Caroline Salls

Pittsburgh, May 15 – Entrec Corp. obtained an initial order from the Court of Queen’s Bench of Alberta that initiates proceedings under the Companies’ Creditors Arrangement Act to conduct a strategic process for identifying and pursuing strategic options and alternatives, according to a news release.

Entrec said the strategic process will explore a broad range of options and alternatives, including a sale of all or a portion of the company’s business and assets or shares or a refinancing, recapitalization or other restructuring transaction.

The company said it is in ongoing discussions with existing key stakeholders in connection with its potential alternatives.

In addition to the CCAA filing, Entrec said it will seek recognition of the Canadian proceedings through a Chapter 15 filing to be made in the U.S. Bankruptcy Court for the Southern District of Texas.

Before obtaining the initial CCAA order, the company said it entered into a restructuring support agreement with its senior secured lending syndicate. The syndicate has also agreed to provide the company with up to $125 million in interim financing.

Alvarez & Marsal Canada Inc. has been appointed as the company’s CCAA monitor.

Entrec said it intends to continue to pay its employees for services rendered during the CCAA proceedings and intends to pay its suppliers for goods and services provided following the CCAA filing.

The next hearing in the CCAA proceedings is scheduled for May 25.

In light of industry challenges facing the Western Canadian oil and natural gas sector, Entrec said it believes that the filing of the CCAA proceedings at this time will give it the time and stability required to continue operating its business while it works to implement the restructuring.

In accordance with the policies of the Toronto Stock Exchange, in connection with the CCAA proceedings, the TSX will be reviewing the continued listing of Entrec’s common shares and 8.5% unsecured subordinated debentures. These securities have been suspended from trading and are expected to be delisted from the TSX.

Entrec is a haul transportation and crane solutions provider based in Acheson, Alta.

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