CALGARY, April 25 /CNW/ - Mystique Energy, Inc. ("Mystique") (TSXV: MYS)
announces that, after careful consideration of all available alternatives,
Mystique's Board of Directors has determined that it is in the best interests
of all of its stakeholders to seek creditor protection under the Companies'
Creditors Arrangement Act (Canada) ("CCAA"), and has obtained such protection
pursuant to an Order from the Alberta Court of Queen's Bench (the "Court").
Recently, Mystique has been hampered by market and financial challenges.
CCAA protection will stay creditors and others from enforcing rights against
Mystique and affords Mystique the opportunity to restructure its financial
affairs. While under CCAA protection, Mystique will continue with its
The Court has granted CCAA protection for an initial period of 30 days,
expiring May 24, 2007, to be extended thereafter as the Court deems
appropriate. Mystique will issue a further press release on or before May 24,
2007 to provide an update.
Three of the independent directors of Mystique, Mr. Verne Johnson, Mr.
Mike Shaikh and Mr. Terry McCoy have resigned. Mr. Brent Walter will remain as
an independent director. Vic Luhowy, President and Chief Executive Officer and
Alex Tworo, Vice President, Exploration also remain as directors. Nick
Antonenko remains as Vice President, Production Operations.
While under CCAA protection, management of Mystique will remain
responsible for the day-to-day operations, under the supervision of a Court
appointed monitor, Ernst & Young Inc., who will be responsible for monitoring
Mystique's ongoing operations, assisting with the development and filing of
the Plan, liaising with creditors and other stakeholders and reporting to the
Court. Management will also be responsible for formulating the Plan for
restructuring Mystique's financial affairs.
The Plan is the proposed compromise that, in due course, Mystique intends
to present to its stakeholders affected by the Plan. This Plan will describe
how Mystique proposes to restructure its affairs and may include, but not
limited to, offers to creditors of a percentage of the total amount owing.
Those stakeholders affected by the Plan will have an opportunity to vote upon
the offer proposed in the Plan. If the Plan is approved by the requisite
number and value of the affected stakeholders, the Court must also approve the
Plan before it may be implemented.
Although CCAA protection enables Mystique to continue its day-to-day
operations until its CCAA status changes, the implications for Mystique
shareholders are less clear. At the end of the restructuring process, the
value of what remains for the shareholders will depend upon the terms of the
Plan approved by the affected stakeholders.
Mystique's primary lender has extended the period of the forbearance
agreement, announced in Mystique's press release dated April 13, 2007, until
June 30, 2007, subject to further extension at the lender's discretion, to
allow for the Plan to be proposed to the affected stakeholders for their
Mystique continues to engage GMP Securities LP ("GMP") to identify and
consider strategic alternatives including a possible merger, amalgamation,
reorganization or takeover of Mystique, or the sale of some or all of the
assets of the Company, or any other alternatives that are considered to be in
the best interests of Mystique, including the participation of interested
parties in formulating the Plan with Mystique to propose to the affected
Certain information regarding Mystique in this news release including
management's assessment of future plans and operations and the timing thereof,
may constitute forward-looking statements under applicable securities laws and
may necessarily involve risks including, without limitation, risks associated
with oil and gas exploration, development, exploitation, production, marketing
and transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, inability to retain services, delays
resulting from or inability to obtain required regulatory approvals, the
ability to access sufficient capital from internal and external sources and
the uncertainty involved in Court proceedings and the implementation of the
Plan under the CCAA. As a consequence, Mystique's actual results, performance
or achievements could differ materially from those expressed in, or implied
by, these forward-looking statements and, accordingly, no assurance can be
given that any events anticipated by the forward=looking statements will
transpire or occur, or, if any of them do so, what benefits Mystique will
derive therefrom. Readers are cautioned that the foregoing list of factors is
not exhaustive. Furthermore, the forward-looking statements contained in this
news release are made as of the date this news release and Mystique does not
undertake any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise, except as may be required by applicable securities laws.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release
For further information:
For further information: Vic Luhowy, President & Chief Executive
Officer, Mystique Energy, Inc., Tel: (403) 261-3634, Fax: (403) 265-3348,
email@example.com, Website - www.mystiqueenergy.ca