ENTREC has determined that in the current circumstances it is in the best interests of the Company and its stakeholders to implement the Strategic Process through a court-supervised restructuring proceeding, and has obtained today an initial order (the “Initial Order”) from the Court of Queen’s Bench of
Prior to obtaining the Initial Order, the Company entered into a restructuring support agreement (the “Restructuring Support Agreement”) with its senior secured lending syndicate (the “Syndicate”) pursuant to which the Syndicate has agreed to support the Company’s Restructuring subject to the terms of the Restructuring Support Agreement, including providing the Company with interim financing secured by a Court-ordered priority charge against all of the Company’s and its subsidiaries’ assets pursuant to the Initial Order, as further described below.
As required by the CCAA, pursuant to the Initial Order,
Pursuant to the Restructuring Support Agreement, the Syndicate has agreed to provide certain interim financing to ENTREC pursuant to an interim financing facility (the “Interim Financing Facility”) during the CCAA proceedings, which Interim Financing Facility was approved by the Court pursuant to the Initial Order. Subject to the terms and conditions of the Restructuring Support Agreement and any orders of the Court or the
ENTREC 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 to the Company following the commencement of the CCAA proceedings.
A comeback hearing in respect of the relief granted pursuant to the Initial Order, and any further relief required by the Company, has been scheduled for
In light of industry challenges facing the Western Canadian oil and natural gas sector, ENTREC believes that the commencement of the CCAA proceedings at this time will provide the Company with the time and stability required to continue operating its business while it works to implement the Restructuring and achieve an outcome that is in the best interests of ENTREC and its stakeholders. There can be no assurance that the Restructuring will result in a transaction, and given the level of secured debt obligations of the Company, there can be no assurance with respect to quantum of recovery that may be available to satisfy claims made by the Company’s secured or unsecured creditors. Additional information with respect to the Restructuring will be made available by the Company as determined necessary or appropriate by the Company.
In accordance with the policies of the
About ENTREC
ENTREC is a heavy haul transportation and crane solutions provider to the oil and natural gas, construction, petrochemical, mining and power generation industries. ENTREC is listed on the
Forward-Looking Statements
Certain information contained in this press release may contain forward looking statements within the meaning of applicable securities laws. The use of any of the words “continue”, “plan”, “intend”, “explore”, “propose”, “would”, “will”, “believe”, “expect”, “position”, “anticipate”, “improve”, “enhance” and similar expressions are intended to identify forward-looking statements. More particularly and without limitation, this press release contains forward-looking statements concerning: the commencement of the Strategic Process and its potential impact and outcomes; the process for implementing the Restructuring; the ability to identify and implement any sale or other restructuring in connection with the Restructuring and the CCAA proceedings; the Company’s intended actions during the CCAA proceedings; the Company’s intention to seek immediate provisional recognition of the Initial Order in the
Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. The above-mentioned forward-looking statements necessarily involve risks, including, without limitation, risks associated with: the ability of the Company to implement the Restructuring; the ability of the Company to find suitable buyers or investors or to obtain all necessary approvals in order to complete any sale or other restructuring transaction identified in connection with the Restructuring and the CCAA proceedings; the ability of the Company to operate in the ordinary course during the CCAA proceedings, including with respect to satisfying obligations to service providers, suppliers, contractors and employees; the ability of the Company to continue as a going concern; the Company’s future liquidity position, and access to capital, to fund ongoing operations and obligations; the ability of the Company to stabilize its business and financial condition; the ability of the Company to implement and successfully achieve its business priorities; the ability of the Company to continue meet the conditions contained in the Restructuring Support Agreement for the support of the Syndicate for the Company’s Restructuring; the ability of the Company to comply with its contractual obligations, including, without limitation, its obligations under debt arrangements; the general regulatory environment in which the Company operates; the general economic, financial, market and political conditions impacting the industry and markets in which the Company operates; the ability of the Company to fund its operations with existing capital and/or raise additional capital to fund its operations; the ability of the Company to generate sufficient cash flow from operations; the impact of competition; the ability of the Company to obtain and retain qualified staff, equipment and services in a timely and efficient manner (including in light of the Company’s restructuring efforts); and the ability of the Company to retain members of the senior management team, including but not limited to, the officers of the Company.
Events or circumstances may cause actual results to differ materially from those anticipated, as a result of the risk factors set out and other known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. In addition, forward looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect and which have been used to develop such statements and information in order to provide stakeholders with a more complete perspective on the Company’s future operations. Such information may prove to be incorrect and readers are cautioned that the information may not be appropriate for other purposes. Although the Company believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because the Company can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the impact of competition; the general stability of the economic environment in which the Company operates; and the timely receipt of any required regulatory approvals;
Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Additional information on these and other factors that could affect the Company’s operations and financial results are included in reports, including under the heading “Business Risks” in the Company’s management’s discussion and analysis for the year ended
For further information, please contact the Monitor,
Telephone: 1-888-368-7311
Email: entrec@alvarezandmarsal.com.
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