MONCTON, NB, Aug. 31, 2012 /CNW/ - Landdrill International Inc. (TSXV: LDI) (the "Company" or "Landdrill"), announces it obtained an Initial Order from the Court of Queen's Bench of New Brunswick today under the Companies' Creditors Arrangement Act (Canada). The Court granted Landdrill and certain of its subsidiaries protection under the CCAA for an initial period expiring on September 28, 2012, to be extended as required and approved by the Court. While the Company is under CCAA protection, all proceedings on the part of its creditors are stayed. The purpose of the CCAA protection is to grant the Company time to conduct a going concern sale process; as previously announced, Landdrill has retained Clarus Securities Inc. to assist with this process.
The Initial Order also authorizes the Company to borrow an amount of up to $1.5 million from Norrep Credit Opportunities Fund, L.P. ("Norrep") (or its agent), a current secured lender of Landdrill, pursuant to the terms of a DIP commitment letter, in order to finance the Company's liquidity needs during the current process. The Company will be seeking a super-priority charge to secure the DIP monies at a subsequent hearing. The funding will assure that the Landddrill is able to continue as a going concern subsequent to the issuance of the Initial Order.
The Initial Order was supported by the Company's senior secured lenders.
Ernst & Young Inc. has been appointed Monitor pursuant to the Initial Order. All shareholder inquiries should be directed to Michael Tripp, General Counsel at (506) 388-8100. Any creditor inquiries regarding the CCAA proceedings affecting Landdrill should be directed to the Monitor (hotline number is 1-855-806-6640 or 1-416-943-5441). A copy of the Initial Order will be made available and may be viewed on the Monitor's website at http://www.ey.com/ca/landdrill.
Prior to the CCAA hearing, all members of the Board of Directors resigned, except Ronald J. Goguen.
The Company further announces that the New Brunswick Securities Commission (NBSC) today granted the Corporation a management cease trade order following its earlier announcement that filing of its interim financial statements for the fiscal quarter ended June 30, 2012 would be delayed.
The order granted by the NBSC, which applies only to the officers and directors of the Corporation, imposes restrictions on all trading activities in the securities of the Corporation. The order will be in place until the Corporation files its interim financial statements for the fiscal quarter ended June 30, 2012. The order does not affect trading in the Corporation's securities by other parties.
The Company expects to file its interim financial statements for the for the fiscal quarter ended June 30, 2012 and the related management's discussion and analysis on or about September 6, 2012. Landdrill confirms that it intends to provide Default Status Reports until its interim financial statements are filed.
Landdrill operations will continue during this process.
This press release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of Landdrill International Inc. (the "Company") and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation that all terms of the contracts will be fulfilled in their entirety, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include commodity prices, availability of personnel, materials and equipment, actual performance of equipment and processes relative to specifications and expectations, unanticipated environmental impacts and continued availability of capital and financing and general economic, market or business conditions. These risks and uncertainties are discussed in the Company's regulatory filings available at www.sedar.com.
There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: LANDDRILL INTERNATIONAL INC.
For further information:
Ronald J. Goguen
President and Chief Executive Officer
Landdrill International Inc.
Phone: (506) 388-8961