CALGARY, Feb. 25, 2016 /CNW/ - As previously announced, on November 9, 2015, Parallel Energy Trust (the "Trust") and its affiliated entities, Parallel Energy Commercial Trust and Parallel Energy Inc. (collectively, the "Canadian Parallel Entities") obtained an Initial Order from the Alberta Court of Queen's Bench in Calgary (the "Canadian Court") for Companies' Creditors Arrangement Act (the "CCAA") creditor protection relief. Contemporaneously with the Canadian Parallel Entities' CCAA filing, the Trust's wholly owned U.S. based subsidiaries, Parallel Energy LP and Parallel Energy GP LLC (the "U.S. Parallel Entities") each filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court of Delaware (the "Bankruptcy Court").
In the Chapter 11 proceedings, the Bankruptcy Court approved the sale of substantially all of the U.S. Parallel Entities' assets for USD $110 million and the sale closed on January 28, 2016. Proceeds received from the sale are insufficient to provide any funds for distribution to debentureholders or unitholders.
With the completion of the sale, the Canadian Parallel Entities are intending to bring an application to the Canadian Court on March 1, 2016 to seek, among other things: (i) a termination of the CCAA proceedings; (ii) a discharge of KPMG Inc. as the Monitor in the CCAA proceedings; and (iii) authorization to assign the Canadian Parallel Entities into bankruptcy under the Bankruptcy and Insolvency Act (the "CCAA Termination Application").
Details of the CCAA Termination Application and additional information regarding the CCAA proceedings, including the Monitor's contact information, will be available on the Monitor's website at http://www.kpmg.ca/parallelenergy. Bankruptcy Court filings and other information related to the Chapter 11 filings are available at a website administered by the Parallel U.S. Entities' noticing agent, Prime Clerk, at http://cases.primeclerk.com/parallel.
SOURCE Parallel Energy Trust