On October 4, 2018, the Alberta Court of Queen’s Bench (the “Court”) sanctioned Connacher Oil and Gas Limited’s (“Connacher”) Amended and Restated Plan of Compromise and Arrangement (the “Plan”) in Connacher’s proceedings under the Companies’ Creditors Arrangement Act (“CCAA”). The Court’s sanction of the Plan follows approval of the Plan by 100% of Connacher’s first lien lenders and 100% of Connacher’s general unsecured creditors who were present and voted on the Plan in person or by proxy at creditors’ meetings held on October 3, 2018 in Calgary, Alberta.
The Plan effects a transaction to sell Connacher to East River Oil and Gas Ltd. (“East River”) through the acquisition of Connacher’s share capital. The proceeds of the Plan transaction will be distributed among Connacher’s affected creditors according to the terms of the Plan. Connacher is now working towards implementation of the Plan transaction, which is expected to be completed after November 8, 2018, subject to the right of East River to extend the closing date in certain circumstances.
The Court’s sanction of the Plan is a significant step towards Connacher’s emergence from protection under the CCAA. In the event that the Plan transaction cannot be implemented, Connacher and East River will instead consummate an asset purchase transaction pursuant to the terms of an Approval and Vesting Order granted by the Court on August 22, 2018.
Cassels is acting for Connacher in its CCAA proceedings with a team that includes Ryan Jacobs, Shayne Kukulowicz, Joe Bellissimo, Jane Dietrich, Natalie Levine, Jeff Oliver, Ben Goodis and Taschina Ashmeade (Restructuring and Insolvency), Michael Wunder and Charles Newman (Financial Services), Jeffrey Roy and Stefanie Sebanc (Securities), Keith Templeton (Corporate), Tim Pinos (Litigation), Jim Morand and Doug Richardson (Tax), Kristin Taylor (Employment), Jonathan Freeman (Real Estate), Gord Goodman (Insurance) and Chris Hersh (Competition).