Canadian Overseas Petroleum Limited (LSE: COPL, CSE: XOP, OTC: VELXF) has acknowledged the unlikely chance of financial recovery for its shareholders and bondholders, as it seeks protection under the Companies’ Creditors Arrangement Act (CCAA) in Canada.
The company is effectively entering a phase akin to administration and has applied to the Alberta Court of King’s Bench for CCAA protection. This move is aimed at halting proceedings against the COPL Group, securing approval for debtor-in-possession financing, and appointing KSV Restructuring Inc. as the monitor for the COPL Group’s affairs.
COPL intends to maintain normal daily operations and plans to continue paying its essential suppliers during the CCAA process.
The company also noted that the forbearance agreement with its senior lenders has expired.
Consequently, COPL has requested the suspension of its shares on the London Stock Exchange and the Canadian Securities Exchange, effective immediately.
Additional Information
Osler, Hoskin & Harcourt LLP and Potter Anderson LLP are serving as restructuring counsel to the Company in Canada and the U.S., respectively, and McCarthy Tétrault LLP is serving as securities counsel to the Company. As previously announced, Peter Kravitz of Province Fiduciary Services is serving as COPL’s Chief Restructuring Officer.
