logo
Share SHARE
FONT-SIZE Plus   Neg

Oilsands Quest Gets Court Approval Of Financing And CCAA Extension

Oilsands Quest Inc. (BQI: Quote) 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
American Airlines Group said pilots at its subsidiaries American Airlines and US Airways, represented by Allied Pilots Association, have approved a new five-year contract which provides immediate pay raises of 23 percent and subsequent annual raises of three percent for the next five years. LEGO Group, TT Games and Warner Bros. Interactive Entertainment have announced their 2015 slate of video games, including LEGO Jurassic World, LEGO Marvel's Avengers, and as well as new hand-held and mobile titles. Social-networking giant Facebook, Inc. is said to be testing their new 'Place Tips' feature for iOS users that will rival a similar service being provided by Yelp or Foursquare. The feature will provide the user relevant content about their location as long as they are there through pop ups on their news feed page of Facebook.
comments powered by Disqus
Follow RTT