CALGARY – Creditors of Lone Pine Resources Inc. (TSX:LPR) and its subsidiaries have approved a plan of arrangement under the Companies’ Creditors Arrangement Act, the independent petroleum exploration and development company said Monday.
Lone Pine said in a statement that as a result of the vote it intends to seek a order approving the deal from the Court of Queen’s Bench of Alberta at a hearing Jan. 9.
If successful, the company will then ask the U.S. Bankruptcy Court for the District of Delaware for recognition of the sanction order at a hearing on Jan. 16.
If all goes well, Lone Pine anticipates implementing the plan and completing its restructuring by Jan. 31.
Under the restructuring, details of which were announced in September, all outstanding common shares of Lone Pine would be cancelled, senior notes converted to new common equity and a new equity investment of US$100 million by holders of senior notes would be made through a private offering.
Lone Pine began negotiations to restructure after disclosing that on Aug. 15 it had failed to make a US$10.1-million, semi-annual interest payment on its senior secured notes.
Trading of its shares have since been suspended by the Toronto Stock Exchange.
Last year the company announced a $250-million lawsuit under the North American Free Trade Agreement after the Quebec government imposed a moratorium on fracking for natural gas under the St. Lawrence River. The company said it had bought leases in good faith and was being denied a chance to develop them.