CALGARY, AB and TULSA, OK, Nov. 13, 2015 /CNW/ - As previously announced, on November 9, 2015, Parallel Energy Trust (the "Trust) and its affiliated Canadian entities obtained an Initial Order for Companies' Creditors Arrangement Act (the "CCAA") creditor protection relief. Contemporaneously with the CCAA filing, the Trust's U.S. subsidiaries, Parallel Energy LP and Parallel Energy GP LLC (the "U.S. Parallel Entities"), each filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code and have since been granted a number of "first day motions" for relief, including authorization to continue paying employee wages and operating expenses. The orders granted will help ensure that the U.S. Parallel Entities continue to conduct normal business during the bankruptcy without interruption.
The Trust's units and debentures (collectively, the "Securities") are currently suspended from trading on the Toronto Stock Exchange ("TSX"). The Trust announces that pursuant to the previously announced listing review of the Trust's units and debentures by the TSX, the Trust's Securities will be delisted effective at the close of business on December 11, 2015. The TSX has further advised that the Securities will remain suspended from trading.
The Trust also announces that it will not file an interim financial report and interim management's discussion and analysis for the period ended September 30, 2015, together with the related certification of filings by November 16, 2015, the deadline prescribed by securities legislation. This will result in the issuance of a cease trade order by the Canadian securities regulatory authorities.
This news release contains forward-looking information including statements regarding the Trust's anticipated future strategies, the CCAA proceedings, the Chapter 11 filings and the sales process and timing of the TSX's delisting of the Trust's securities and the Trust's ability to demonstrate compliance with the listing requirements of the TSX. Such forward-looking statements speak only as of the date of this document and are based on Parallel's current expectations and assumptions in light of information available to it at the time the statements are made. The statements involve substantial known and unknown risks and uncertainties, most of which are beyond the control of Parallel, including, without limitation, the decisions of the courts' in Canada and the United States, the financial condition and market capitalization of the Trust, commodity price levels, retention of key personnel, whether the sales process will result in an acceptable transaction of any form and what arrangements Parallel's existing lenders may agree to, whether the sales process will result in proceeds which exceed the senior indebtedness owed to Parallel's existing lending syndicate, in addition to those risks and uncertainties listed under "Risk Factors" in Parallel's annual information form dated March 19, 2015 (the "AIF") filed under the Trust's profile on SEDAR at www.sedar.com. Parallel cautions investors in Parallel's securities that the assumptions used in the preparation of the forward-looking statements, although considered reasonable at the time of preparation, may prove to be imprecise and important risk factors discussed above cast significant doubt on Parallel's ability to continue as a going concern. Actual results, performance or achievements may differ materially from those projected in any forward-looking statements. As such, undue reliance should not be placed on the forward-looking statements. No assurance can be given that the sales process will result in proceeds in excess of the senior indebtedness owed to Parallel's existing lending syndicate or that the expectations set out in this news release will transpire in the manner expressed in, or implied by, these forward-looking statements or if any of them do transpire, what benefits Parallel or its securityholders will derive therefrom. Unless required by law, Parallel does not assume any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or circumstances or otherwise. The forward-looking statements are expressly qualified by these cautionary statements.
SOURCE Parallel Energy Trust
For further information: Curtis Pelletier, Manager, Investor Relations, 403-781-7888 or Toll-Free: 1-855-781-7888, [email protected]