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LEDUC, AB, April 18, 2019 /CNW/ - Hyduke Energy Services Inc. ("Hyduke" or the "Company") (HYD – TSX) wishes to report on the following matters:
Update on Sale of Head Office Building and Land
Further to its press release of December 10, 2018, the Board and management of Hyduke wish to report that effective April 16, 2019, the Company completed the sale of its head office building (including the manufacturing facility) located in Nisku, AB. Hyduke's head office has been relocated to #100, 3903 - 75 Avenue, Leduc, Alberta, T9E 0K3.
The net proceeds of the sale will be used to pay all of the Company's secured creditors.
B.W. Rig Supply Inc. Extension to Notice of Intention to Make a Proposal Under the BIA
As previously reported, on February 8, 2019, B.W. Rig Supply Inc. ("B.W. Rig"), a wholly-owned subsidiary of Hyduke, filed with the Office of the Superintendent of Bankruptcy a Notice of Intention to Make a Proposal ("Notice of Intention") pursuant to the provisions of Part III of the Bankruptcy and Insolvency Act (Canada) (the "BIA") and Deloitte Restructuring Inc. was appointed as trustee in the proposal proceedings to assist B.W. Rig in its restructuring efforts. The filing of the Notice of Intention had the effect of imposing an automatic 30-day stay of proceedings that protects B.W. Rig and its assets from the claims of creditors while B.W. Rig pursues its restructuring efforts. This 30-day period may be extended with the authorization of the Court of Queen's Bench of Alberta.
On April 17, 2019, B.W. Rig filed with the Court of Queen's Bench of Alberta and was granted an extension to the stay of proceedings until June 7, 2019. This will allow B.W. Rig additional time to complete its restructuring proposal to address the interests of its creditors and allow it to carry on its operations.
Hyduke will provide further updates as to B.W. Rig's next steps in the process when these have been determined.
Trading on the TSX under the symbol "HYD", Hyduke Energy Services Inc. is a supplier of equipment and services to the oil and gas drilling and well servicing industry.
Forward looking information
This news release contains forward-looking information relating to the Company paying its secured creditors with the proceeds received from selling its head office building and land and one of the Company's wholly-owned subsidiaries filing an extension to a Notice of Intention to make a proposal pursuant to the Bankruptcy and Insolvency Act (Canada),. The use of any of the words "if", "will", "continue" and similar expressions are intended to identify forward-looking statements. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this document.
The forward-looking statements included in this document are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of factors and risks, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements.
The forward-looking statements contained in this press release speak only as of the date of this press release. Other risk factors that could affect the Company's operations or financial results are included in the Company's annual information form and may be accessed through the SEDAR website (www.sedar.com).
While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law.
The TSX has neither reviewed nor approved this release.
SOURCE Hyduke Energy Services Inc.
For further information: Pat Ross, President and CEO, Tel (780) 955-0355 or Nick Cristiano, CFO, Tel (780) 955-0355