logo
Share SHARE
FONT-SIZE Plus   Neg

Oilsands Quest Gets Court Approval Of Financing And CCAA Extension

Oilsands Quest Inc. (BQI) said that it has received Court approval of its previously-announced DIP financing and its request to extend creditor protection. Court approval of the announced sale of the Company's Eagles Nest asset has been delayed, because a second party has come forward with a substantially higher offer for the asset.

The Alberta Court of Queen's Bench approved Oilsands Quest's debtor-in-possession or "DIP" financing of C$3.75 million, to fund ongoing operating costs and other expenses while the Company is under creditor protection. Advances under the DIP facility are now available to the Company.

Oilsands Quest also requested and obtained an extension of the order providing creditor protection under the Companies' Creditors Arrangement Act (Canada) ("CCAA"), which was to expire February 17, 2012. Creditor protection under the CCAA will now expire May 18, 2012, unless further extended as required and approved by the Court.

Oilsands Quest previously stated that it would request Court approval for the sale of its Eagles Nest property to an unrelated third party for C$4.4 million. However, on February 15, 2012, the Company received an additional offer to purchase the Eagles Nest property from another third party. Under this new offer, the buyer would pay C$6 million for the asset, with a non-refundable deposit of C$400,000.

In light of the late offer, the Court delayed its decision on the asset sale until February 22, 2012, to allow time for the new offer to be evaluated fully and for any additional prospective bidders to come forward.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
HSBC is reportedly laying off about 100 of its senior investment bankers worldwide, as the banking giant strives to curb operating costs. According to reports, the London-headquartered bank will eliminate managing director and director level employees at the Global Banking and Markets division, as... Samsung Electronics Co., Ltd. (SMSN.L, SSNNF.OB, SSNLF.OB) will reportedly blame faulty batteries for last year's Galaxy Note 7 fiasco. According to a Wall Street Journal report, Samsung's investigation of Galaxy Note 7 smartphones found that some batteries were irregularly sized while others had... Federal investigators have closed their probe of a fatal crash that involved a Tesla Motors Inc. car eight months ago. The regulators said they have found no safety defects in the vehicle's automated driving system and that Tesla's Autopilot-enabled vehicles did not need to be recalled.
comments powered by Disqus
Follow RTT