Source Energy Services Ltd. and its subsidiaries in connection with the successful completion of its recapitalization transaction.
|Areas||Banking and Finance Law, Corporate and Commercial, Corporate Restructuring, Tax|
Goodmans LLP acted as counsel to Source Energy Services Ltd. and its subsidiaries (“Source” or the “Company”) in connection with the successful completion of its recapitalization transaction pursuant to a corporate plan of arrangement under the Canada Business Corporations Act (the “CBCA”).
The recapitalization transaction was implemented pursuant to a CBCA plan of arrangement. Source obtained an interim order from the Court of Queen’s Bench of Alberta on October 26, 2020 and the plan of arrangement was approved one month later pursuant to a final order of the Court dated November 27, 2020. The plan of arrangement was approved by 100% of noteholders and 99.98% of shareholders who voted at the meetings.
In connection with the completion of the transaction, Source’s credit facility was amended and restated to extend its maturity date, adjust certain covenants, and enable the Company to access up to $20 million of liquidity under an additional financing facility ranking in priority to the new secured notes on the Company’s fixed asset collateral.