CALGARY, Aug. 15, 2016 /CNW/ - (TSX: TBE) – Twin Butte Energy Ltd. ("Twin Butte" or the "Company") announces that it has entered into an agreement with its senior lenders pursuant to which such lenders have consented to the Company entering into an amending agreement to its arrangement agreement with Reignwood Resources Holding Pte. Ltd. (the "Purchaser") on August 9, 2016 and waived the event of default under the Company's credit agreement announced on August 9, 2016 related to the entering into of such amending agreement without prior lender consent.
Such lenders have also agreed to continue to forbear from exercising their rights and remedies for certain other prior defaults under Twin Butte's credit agreement, provided that the Company's previously announced plan of arrangement (the "Arrangement") in respect of the Company and its securityholders and involving the Purchaser and Reignwood Resources Trading UK Limited, closes by September 26, 2016. The continuation of such forbearance is conditional upon, among other things, the deposit by the Purchaser, in escrow, of $5 million by September 8, 2016, in the event that securityholder and court approval for the Arrangement has been received on or before certain dates. The escrowed amount will be used to fund the aggregate consideration payable by the Purchaser pursuant to the Arrangement.
Twin Butte's annual and special meeting of securityholders is scheduled to be held at 9:00 a.m. (Calgary time) on August 29, 2016 to consider, among other things, the approval of the Arrangement. Securityholders who have not voted in respect of the Arrangement or who wish to change their vote may do so by following the instructions set forth on the proxy or voting instruction form provided to them. Securityholders may revoke a previously voted proxy with an instrument in writing, including another proxy, signed by the securityholder and delivered care of Twin Butte to Computershare Trust Company of Canada. In order to revoke a proxy previously delivered by an intermediary or its agent, on their behalf, beneficial securityholders should carefully follow any revocation instructions set forth on the voting instruction form provided to them by their intermediary or agent. The board of directors of Twin Butte unanimously recommends that Twin Butte securityholders vote FOR the Arrangement. Securityholders are encouraged to read the many reasons to vote FOR the Arrangement, including the potential negative impacts to the Company should the Arrangement not proceed. Detailed information can be found on Twin Butte's SEDAR profile at www.sedar.com.
Questions concerning voting may be directed to:
Laurel Hill Advisory Group
North American Toll-Free Number: 1-877-452-7184
Collect Calls Outside North America: 416-304-0211
Certain information set forth in this press release, including information and statements which may contain words such as "could", "plans", "should", "anticipates", "expects", "believes", "will" and similar expressions and statements relating to matters that are not historical facts, contain forward-looking statements, including but not limited to statements regarding: certain future events for the continuation of the lenders forbearance and an anticipated closing date of the Arrangement. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Twin Butte's control, including the rights of the lenders to exercise any rights or remedies under the credit facility and the failure to meet certain conditions of the lender forbearance. The foregoing list is not exhaustive. Additional information on these and other risks that could affect completion of the Arrangement are set forth in the information circular, which is available on SEDAR at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The actual results, performance or achievement of Twin Butte could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Twin Butte will derive therefrom. Twin Butte disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
SOURCE Twin Butte Energy Ltd.
For further information: about Twin Butte, please contact: Twin Butte Energy Ltd., Rob Wollmann, President and Chief Executive Officer; R. Alan Steele, Vice President Finance, Chief Financial Officer and Corporate Secretary; Tel: (403) 215-2045, Website: www.twinbutteenergy.com