Gasfrac Energy Services files for CCAA protection

By Angela McDaniels

Tacoma, Wash., Jan. 15 – Gasfrac Energy Services Inc. has begun proceedings and obtained court protection under the Companies' Creditors Arrangement Act, according to a company news release.

Under an initial order granted by the Court of Queen's Bench, in the Province of Alberta, on Jan. 15, the company and its subsidiaries have obtained protection from their creditors other than the company’s primary secured lender, PNC Bank Canada Branch, until Feb. 9.

The company said the application for the initial order was not opposed by PNC, and the company is currently attempting to negotiate a forbearance agreement with PNC related to its secured debt.

The company began a strategic alternative process on Nov. 13 but said it was unable to obtain a suitable offer for the purchase of itself or its assets that would satisfy all of its existing financial obligations.

The company plans to apply for a further court order to create a sale and investments solicitation process to be conducted in conjunction with the CCAA proceedings that is intended to generate interest in either its business or assets.

Subject to further court approval, the company will continue to use CIBC World Markets Inc. as sales agent, investment banker and financial adviser in connection with any proposed financing or sale transaction.

Ernst & Young Inc. has been appointed monitor of the company for the CCAA proceedings.

Calgary, Alta.-based Gasfrac provides liquefied natural gas fracturing services to oil and gas companies.

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