Oilsands Quest Receives Court Approval of Financing and CCAA Extension; Receives New Higher Bid for Non-Core Eagles Nest Asset
18 February 2012 - 12:00AM
PR Newswire (Canada)
NYSE Amex: BQI CALGARY, Feb. 17, 2012 /CNW/ - Oilsands Quest Inc.
("Oilsands Quest," or "the Company") has received Court approval of
its previously-announced DIP financing and its request to extend
creditor protection. Court approval of the announced sale of the
Company's Eagles Nest asset has been delayed, because a second
party has come forward with a substantially higher offer for the
asset. The Alberta Court of Queen's Bench (the "Court") approved
Oilsands Quest's debtor-in-possession ("DIP") financing of CDN$3.75
million, to fund ongoing operating costs and other expenses while
the Company is under creditor protection. Advances under the DIP
facility are now available to the Company. Oilsands Quest also
requested and obtained an extension of the order providing creditor
protection under the Companies' Creditors Arrangement Act (Canada)
("CCAA"), which was to expire February 17, 2012. Creditor
protection under the CCAA will now expire May 18, 2012, unless
further extended as required and approved by the Court. Oilsands
Quest previously stated that it would request Court approval for
the sale of its Eagles Nest property to an unrelated third party
for CDN$4.4 million. However, on February 15, 2012, the Company
received an additional offer to purchase the Eagles Nest property
from another third party. Under this new offer, the buyer would pay
CDN$6 million for the asset, with a non-refundable deposit of
CDN$400,000. In light of the late offer, the Court delayed its
decision on the asset sale until February 22, 2012, to allow time
for the new offer to be evaluated fully and for any additional
prospective bidders to come forward. Oilsands Quest continues to
operate under the protection of CCAA with the assistance of a
Court-appointed monitor. The Company's common shares remain
suspended from trading until either a delisting occurs or until the
NYSE permits the resumption of trading. 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. Forward-looking statements: This news release
includes certain statements that may be deemed to be
"forward-looking statements," including the expected date for
closing the sale of the Eagles Nest asset. 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 statements. 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 complete the previously
announced solicitation process while under creditor protection, its
ability to 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. Oilsands
Quest Inc. CONTACT: Investor RelationsEmail:
ir@oilsandsquest.comInvestor Line: 1-877-718-8941
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