CALGARY, Aug. 13, 2017 /CNW/ - Petrowest Corporation ("Petrowest" or the "Company") (TSX:PRW) announces that the Company's banking syndicate have provided a notice demanding immediate repayment of all amounts owing under the credit facilities. The Bridge Loan from subordinated lenders arranged on May 19, 2017 is fully drawn and no additional sources of credit or funding are available. Accordingly, the Company's Board of Directors have consented to the appointment of a receiver and intend on resigning immediately upon such appointment.
The banking syndicate intends to file an application with the Court of Queen's Bench of Alberta to place the Company into receivership and appoint Ernst & Young as receiver (the "Receiver"). The application is scheduled to be heard on Tuesday August 15, 2017 and court approval is expected. The Receiver will be charged with managing the day to day affairs of the Company during the period of appointment and should be contacted with respect to any questions concerning the assets and liabilities of Petrowest. The common shares of the Company may, at the discretion of the TSX and in accordance with Section 704 of the TSX Company Manual, be immediately halted from trading on the TSX.
FORWARD LOOKING INFORMATION:
Certain information and statements contained in this news release constitute forward-looking information. The information and statements contained in this news release that are not historical facts are forward-looking statements. Forward-looking statements (often, but not always, identified by the use of words such as "seek", "plan", "continue", "estimate", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "expect", "may", "anticipate" or "will" and similar expressions) may include plans, expectations, opinions, or guidance that are not statements of fact. In particular, this press release contains the following forward looking statements pertaining to, without limitation, the following: (1) the Board of Directors intention to resign upon the appointment of the Receiver, (2) the intention of the bank syndicate to file an application placing the Company into Receivership, (3) the scheduled court date and the anticipated court approval of the receivership application.
Any forward-looking statements are made as of the date hereof and Petrowest does not undertake to publicly update and review such statements to reflect new events, subsequent events or otherwise, except to the extent events and circumstances have occurred that are reasonably likely to cause actual results to differ materially from material forward-looking information for a period that is not yet complete or as otherwise required by law.
Although management of Petrowest believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Accordingly, readers should not place undue reliance upon any of the forward-looking information set out in this news release. All of the forward looking statements of Petrowest contained in this news release are expressly qualified, in their entirety, by this cautionary statement. The various risks to which Petrowest is exposed are described under "Risk Factors" in Petrowest's Annual Information Form, available under Petrowest's profile on the SEDAR website at www.sedar.com.
SOURCE Petrowest Corporation
For further information: please contact Daryl Rudichuk, Chief Financial Officer at (403) 384-0404 or info@petro‐west.com.