CALGARY, March 6, 2014 /CNW/ - Alston Energy Inc. ("Alston" or the "Company") announces today that, further to its previous press releases, it has
obtained a further order from the Alberta Court of Queen's Bench (the "Court") pursuant to the Companies' Creditors' Arrangement Act (Canada) ("CCAA") extending the protection from its creditors granted by the Court
under its Initial Order until May 9, 2014. In addition, the Court
granted approval of the previously announced sale by Alston of all of
its oil and gas assets in the Alexander area of Alberta (the "Alexander Assets") to a private Alberta company. The sale of the Alexander Assets
subsequently occurred on March 6, 2014.
In addition, Alston announces that it will not be able to file its audited annual financial
statements and related management's discussion and analysis for the
period ended December 31, 2013 together with the related certification
of filings under National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings (collectively, the "Continuous Disclosure Documents") by April 30, 2014, the deadline prescribed by securities legislation
(the "Specified Requirement"). In addition, it will not be able to file the report required under
National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. As previously disclosed, on December 9, 2013, the Company commenced
proceedings in the Court under the CCAA. In the CCAA proceedings,
Alston continued its business under the protection of a stay of
creditor claims and conducted a sales process. Under the CCAA, Alvarez
& Marsal Canada Inc. was appointed by the Court as Monitor. Since the
CCAA proceedings commenced, in compliance with the CCAA and the orders
of the Court in the CCAA proceedings, Alston has provided the Monitor
with full access to its accounting records. The Monitor has filed with
the Court periodic reports which have included Alston's cash flow
projections and other financial information concerning the Company. The
Company anticipates that the Monitor will continue to file reports with
the Court (and post them on its website) updating relevant financial
information concerning the Company. The Monitor's reports and Court
records are available on line on its website at www.alvarezandmarsal.com/alston.
As a result of being in CCAA, Alston does not have the requisite
resources to prepare and file the Continuous Disclosure Documents
reflecting its financial position as of December 31, 2013. Alston
intends to file the Continuous Disclosure Documents as soon as is
commercially reasonable, or as required by the Court.
Alston intends to satisfy the provisions of the alternative information
guidelines set out in National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203") so long as it remains in default of the Specified Requirement. It also
intends to file with the applicable securities regulatory authorities
throughout the period in which it is in default of the Specified
Requirement, the same information it provides to its creditors when the
information is provided to its creditors and in the same manner as it
would file a material change report under Part 7 of National Instrument
51-102 Continuous Disclosure Requirements.
The common shares of Alston Energy Inc. trade on the TSX Venture
Exchange under the trading symbol "ALO". The common shares will
continue to trade on the facilities of the TSX Venture Exchange during
the CCAA process.
For additional information about Alston please visit our website www.alstonenergy.ca or under the company profile on SEDAR www.sedar.com.
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 press
Advisory: This press release contains forward-looking statements. More
particularly, this press release contains statements concerning
expectations regarding the anticipated failure to file audited annual
financial statements and the intention to use the alternative reporting
guidelines set forth in NP 12-203.
The forward-looking statements contained in this document are based on
certain key expectations and assumptions made by Alston, including
expectations and assumptions concerning the anticipated failure to file
the financial statements and the anticipated consequences thereof.
Although Alston believes that the expectations and assumptions on which
the forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because Alston
can give no assurance that they will prove to be correct. Since forward
looking statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual results
could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to, the
failure to close the acquisition based on the inability of either party
to meet a condition to closing as set forth in the PSA.
The forward-looking statements contained in this document are made as of
the date hereof and Alston undertakes no obligation to update publicly
or revise any forward-looking statements or information, whether as a
result of new information, future events or otherwise, unless so
required by applicable securities laws.
SOURCE: Alston Energy Inc.
For further information:
ALSTON ENERGY INC.
Don K. Umbach, President & CEO
Tel.: (403) 265-2770 Ext. 222
Neil G. Burrows, VP Finance & CFO
Tel.: (403) 265-2770 Ext. 228