CUSIP# 678046 10 3
NYSE Amex: BQI
CALGARY, Jan. 12, 2012 /CNW/ - Oilsands Quest Inc. (NYSE Amex: BQI)
("Oilsands Quest," "OQI" or "the Company") has requested and obtained
approval from the Alberta Court of Queen's Bench (the "Court") to
conduct a process to solicit offers to acquire, restructure or
recapitalize the Company (the "Solicitation Process"). The Company is
also pursuing Debtor-in-Possession financing to provide liquidity as it
conducts the Solicitation Process.
The Solicitation Process will be overseen by a Special Committee of the
Oilsands Quest Board of Directors, chaired by Paul Ching and including
Ronald Blakely and Brian MacNeill, all of whom are independent
directors. The Special Committee will consider all offers, and will
ultimately recommend a course of action to the Company's full Board.
With the Court's approval, the Company has retained TD Securities Inc.
("TD Securities") as its financial advisor to assist it with this
process. TD Securities is familiar with Oilsands Quest's assets and
business as a result of previous engagements and has assisted Oilsands
Quest in prior discussions with potentially interested parties. TD
Securities will begin soliciting indications of interest from
prospective strategic or financial parties, with preliminary bids due
in early March 2012. The Company expects to shortlist potential bidders
and seek binding offers by late March 2012, with a target to conclude
an agreement by mid-April 2012.
The Board of Directors and management continue to be responsible for
determining whether a given plan for restructuring the Company's
affairs is feasible, with input from the Court-appointed Monitor under
the Companies' Creditors Arrangement Act ("CCAA"). Stakeholders whose
rights would be affected by the plan will have an opportunity to vote
on the plan. Before a plan is implemented it must be approved by the
requisite number and value of affected stakeholders contemplated by law
and approved by the Court.
There can be no assurance that the Solicitation Process will result in a
financing or a sale of the Company or in any other transaction and the
company does not intend to comment further regarding the evaluation of
alternatives unless the Board agrees to a definitive transaction or the
Solicitation Process is concluded.
About Oilsands Quest
Oilsands Quest Inc. (www.oilsandsquest.com) is exploring and developing oil sands permits and licences, located in
Saskatchewan and Alberta, and developing Saskatchewan's first
commercial oil sands discovery.
This news release includes certain statements that may be deemed to be
"forward-looking statements." All statements, other than statements of
historical facts, included in this news release that address
activities, events or developments that management expects, believes or
anticipates will or may occur in the future are forward-looking
Forward-looking statements are statements other than relating to
historical fact and are frequently characterized by words such as
"plan", "expect", "project", "intend", "believe", "anticipate",
"estimate", "potential", "prospective" and other similar words or
statements that certain events or conditions "may" "will" or "could"
occur. Forward-looking statements are based on the opinions and
estimates of management at the date the statements are made, and are
subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
anticipated in the forward-looking statements, which include but are
not limited to the ability to raise additional capital, risks
associated with the Company's ability to implement its business plan,
its ability to successfully submit a timely plan to its stakeholders
and the court under the CCAA and to resolve its operational, legal and
financial difficulties, the possible delisting of its securities from
NYSE Amex, risks inherent in the oil sands industry, regulatory and
economic risks, land tenure risks and those factors listed under the
caption "Risk Factors" in the Company's Form 10-Q filed with the
Securities and Exchange Commission on December 9, 2011. The Company
undertakes no obligation to update forward-looking information if
circumstances or management's estimates or opinions should change,
except as required by law. The reader is cautioned not to place undue
reliance on forward-looking statements.
SOURCE Oilsands Quest Inc.
For further information:
Investor Line: 1-877-718-8941