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.
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.
The Stay was initially granted through to March 28, 2019; however, on March 28, 2019 the Court granted a further Order extending the Stay through to June 14, 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. Under the CCAA Order, the Elcano Group is to continue to carry on business in a manner consistent with the commercially reasonable preservation of its business and assets while it engages in a Court supervised Sale and Investment Solicitation Process (the “SISP”). Additional details in respect of the SISP will be available in the near future.
Should you have any questions or concerns, please contact Marc Kelly, of H&K, at 403-536-8510.
Sale and Investment Solicitation Process
Pursuant to the CCAA Order, Elcano has engaged GMP FirstEnergy (“GMP”) as its sales advisor to administer the Court directed SISP. Copies of the GMP introductory teaser letter, the procedural details of the SISP and the relevant timelines associated with the SISP can be found below.
Interested parties wishing to obtain additional information and participate in the SISP must contact GMP at:
- Scott Robertson – 403-262-0606 or email@example.com
- Omid Eslami – 403-262-0613 or firstname.lastname@example.org
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:
- Order re: Claims Procedure – March 28, 2019
- Proof of Claim Instruction Letter
- Proof of Claim Form
- Newspaper Advertisement
- Schedule of Known Claimants as at February 26, 2019
- Originating Application – filed February 20, 2019
- Affidavit of Scott Pincock – sworn and filed February 20, 2019
- Exhibits 1 to 8 of the February 20, 2019 Affidavit of Scott Pincock
- Exhibits 9 to 19 of the February 20, 2019 Affidavit of Scott Pincock
- Application re: Stay Extension and Claims Procedure – filed March 18, 2019
- Affidavit of Richard Fulton – sworn and filed March 18, 2019
- CCAA Initial Order and SISP Approval – February 26, 2019
- Order re: Stay Extension and Amendment to Initial Order – March 28, 2019
- Order re: Sealing of Confidential Exhibit – March 28, 2019
- Order re: Critical Suppliers – March 28, 2019
- Order re: Claims Procedure – March 28, 2019
Monitor’s Reports and Correspondence
- Pre-Filing Report – February 20, 2019
- Initial Letter to Creditors – March 1, 2019
- Listing of Creditors as at Feb. 26, 2019
- First Report of Monitor – March 18, 2019
- Notice to Creditors re: Offers to Acquire Claims – March 26, 2019