Canada-based oilsands producer Connacher Oil & Gas Ltd was seeking protection from creditors one year after emerging from bankruptcy.
The company has submitted to the Court of Queen’s Bench, a proposal to shield it under the Companies Creditor’s Arrangement Act whilst it restructures its business which includes part or outright sale of the company.
During the company’s previous restructuring in May 2015, creditors holding $1bn of the Connacher’s debt ended up owning the entire company in a debt-to-equity swap transaction.
The company cited depressed oil prices as one of the main reasons for filing for bankruptcy in 2016. That combined with the restricted output from its oilsands project at Fort McMurray negatively impacted the company.
The company was exploring restructuring options in March 2016 and had also missed an interest payment on $35m of its debt which it had raised post-restructuring.
Source: Winnipeg Free Press