Landdrill Announces Demand for Payment from Secured Creditors and Delay in Filing Financial Statements
MONCTON, NB, Aug. 29, 2012 /CNW/ - Landdrill International Inc. (TSXV: LDI) (the "Company" or "Landdrill"), announces that it has been served with demands for payment and s. 244 notices from its major secured creditors and will be delaying the filing of its financial statements. The Company is currently engaged in a strategic review process. Landdrill has retained Clarus Securities Inc. of Toronto as financial advisor to consider all strategic options including the sale of all or part of the Company or its operating divisions.
The Company, and several of its subsidiaries, were served with a demand for payment of outstanding indebtedness to Sprott Resource Lending Partnership ("Sprott"), a secured creditor of the Company, dated August 13, 2012. The demand was in the amount of $2,536,173.88 to be paid on or before August 23, 2012 and was accompanied by a Notice of Intention to Enforce Security pursuant to Subsection 244(1) of the Bankruptcy and Insolvency Act (Canada) (the "Act"). At this time, the Company had been engaged in forbearance negotiations with its three major secured creditors and a representative of Sprott advised that Sprott would continue to negotiate in good faith towards a forbearance agreement.
The Company, and several of its subsidiaries, were served with a demand for payment of outstanding indebtedness to GE Canada Equipment Financing G.P. ("GE"), a secured creditor of the Company, dated August 17, 2012. The demand was in the amount of $2,875,037.76 to be paid on or before August 30, 2012 and was accompanied by a Notice of Intention to Enforce Security pursuant to Subsection 244(1) of the Act.
On August 20, 2012, the Company filed a confidential material change report with regulatory authorities relying upon Subsection 7.1(2) of National Instrument 51-102 in respect of the aforesaid demands.
On August 21, 2012, the Company, and several of its subsidiaries, were served with a demand for payment of outstanding indebtedness to Norrep Credit Opportunities Fund, LP ("Norrep"), a secured creditor of the Company, dated August 21, 2012. The demand was in the amount of $8,261,738 to be paid on or before August 31, 2012 and was accompanied by a Notice of Intention to Enforce Security pursuant to Subsection 244(1) of the Act. At the time of serving its demand, Norrep advised that it would continue good faith negotiations with the Company but was desirous of protecting its legal rights.
Landdrill continues to be engaged in negotiations with all of its secured creditors towards a resolution and the Company is currently diligently engaged in a strategic review of all available options.
The Company anticipates a further announcement will be forthcoming in the near future.
The release of Landdrill's financial statements and MD&A for Q2 will be delayed until on or about September 6, 2012. The delay permits management, the board of directors and Landdrill's external advisors adequate time to review the financial statements and disclosure in conjunction with the strategic review process.
This press release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of Landdrill International Inc. (the "Company") and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation that all terms of the contracts will be fulfilled in their entirety, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include commodity prices, availability of personnel, materials and equipment, actual performance of equipment and processes relative to specifications and expectations, unanticipated environmental impacts and continued availability of capital and financing and general economic, market or business conditions. These risks and uncertainties are discussed in the Company's regulatory filings available at www.sedar.com.
There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: LANDDRILL INTERNATIONAL INC.For further information:
Ronald J. Goguen
President and Chief Executive Officer
Landdrill International Inc.
Phone: (506) 388-8961