Hardie & Kelly Elcano GroupElcano Group

COMPANIES’ CREDITORS ARRANGEMENT ACT PROCEEDING

Elcano Exploration Inc. (“EEI”) and Elcano Exploration Ltd. (“EEL”) made an application to the Court of Queen’s Bench of Alberta (the “Court”) seeking protection under the Companies’ Creditors Arrangement Act (“CCAA”).  On February 26, 2019 a CCAA Initial Order and SISP Approval order (the “CCAA Order”) was granted by the Honourable Madam Justice K.M. Horner of the Court. The Court appointed Hardie & Kelly Inc. as Monitor of the CCAA proceedings (the “Monitor” or “H&K”). A copy of the CCAA Order can be accessed below under the section entitled “Court Orders”.

The CCAA Order provides certain relief including a Stay of Proceedings (the “Stay”) against EEI, EEL and also Elcano Energy Partnership (collectively referred to as the “Elcano Group”) and their respective assets and provides the Elcano Group with an opportunity to prepare and file a plan of arrangement or compromise under the CCAA for the consideration of its creditors. On June 7, 2019 the Court granted a further Order extending the Stay through to July 11, 2019.

Claims against the Elcano Group for payment for goods and services supplied to the Elcano Group prior to February 26, 2019 are suspended and creditors are prohibited from continuing or taking any actions or exercising any rights against the Elcano Group except with leave of the Court.

Plan of Compromise and Arrangement and Meeting of Creditors

The Elcano Group filed its Plan of Compromise and Arrangement (the “Plan”) with the Court on June 11, 2019.  A meeting of the Affected Creditors was held on Tuesday, July 2, 2019 at which time the Affected Creditors voting on the Plan unanimously approved the Plan.

On July 4, 2019, the Court granted an Order sanctioning the Plan.

Copies of the Plan and the relevant materials, which were mailed by the Monitor to those Affected Creditors with Proven Claims, can be found below.

Claims Procedure

On March 28, 2019, the Court granted an Order (the “Claims Procedure Order”) directing the Monitor to assist the Elcano Group with conducting a claims procedure (the “Claims Procedure”) with respect to claims against the Elcano Group and its present and former Directors and Officers as of February 26, 2019.   

On April 5, 2019, Known Claimants (as defined in the Claims Procedure Order) were issued personalized letters from the Monitor setting out the amount and classification of the claims of Known Claimants on the basis of the books and records of the Elcano Group along with a Proof of Claim form and Proof of Claim Instruction Letter (the “Claims Package”).

In the event a Known Claimant does not dispute the amount or classification of the Claim as determined by the Elcano Group, no further action is required.  A schedule of the Known Claimants and the amount and classification of the respective Claims as determined by the Elcano Group can be found below.

In the event a Known Claimant disputes either the amount or classification of the Claim as determined by the Elcano Group, a completed Proof of Claim form and related supporting documentation must be submitted to the Monitor by no later than 5:00 P.M. (MDT) on May 13, 2019 (the “Claims Bar Date”).  In such instance, failure to submit a Proof of Claim in the proper form by the Claims Bar Date will result in the Claim being forever barred and extinguished. 

An Unknown Claimant (as defined in the Claims Procedure Order) wishing to assert a claim must return a completed Proof of Claim form and related supporting documentation to the Monitor on or before the Claims Bar Date.

The documentation associated with the Claims Procedure is as follows:

Court Filings

Court Orders

Monitor’s Reports and Correspondence

Should you have any questions or concerns, please contact Marc Kelly, of H&K, at 403-536-8510.