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.
ADVISORIES
Forward-Looking Information
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