TORONTO, Sept. 14, 2017 /PRNewswire/ - Dundee
Energy Limited ("Dundee Energy" or the
"Corporation") (TSX: DEN) today announced that it has
commenced a sale solicitation process for the sale of its oil and
gas assets in Ontario which are
managed by Dundee Energy Limited Partnership ("DELP" or the
"Company") (a wholly owned entity of the Corporation).
On August 16, 2017, with the
authorization and approval of its board of directors (the
"Board"), the Company commenced insolvency proceedings by
filing a Notice of Intention to Make a Proposal ("NOI")
pursuant to the provisions of the Bankruptcy and Insolvency Act
(Canada) ("BIA"). FTI
Consulting Canada Inc. has been appointed as the trustee under the
NOI (the "Proposal Trustee"). The principal purpose of the
NOI filing is to create a stabilized environment for the Company
and the Proposal Trustee to run a court-supervised sale
solicitation process ("SSP") with the goal of identifying
one or more parties interested in submitting proposals to purchase
some or all of the business, properties and/or assets of the
Company (collectively the "Business") and to implement one
or a combination of those proposals to purchase some or all of the
Business.
The decision to file the NOI was made by the Board in response
to the notice received on July 21,
2017 from the lenders under the amended and restated credit
agreement dated July 31, 2012, as
amended (the "Credit Agreement"), demanding repayment in full of
the outstanding principal amount under the Credit Agreement
(including all accrued and unpaid interest and expenses payable
under the Credit Agreement). The lenders under the Credit Agreement
have entered into a forbearance agreement and are supporting DELP
in the reorganization proceedings.
The Company obtained an order from the Ontario Superior Court of
Justice (the "Court") approving the terms of the SSP. The
Company's objective is to complete the SSP by the first half of
December 2017.
Court materials and other information about the proposal
proceedings will be available on the Proposal Trustee's website at
http://cfcanada.fticonsulting.com/Dundee/.
There can be no assurance that the Company will be successful in
its efforts under the SSP or that the Court will approve the SSP or
any competing bid that may emerge from the SSP.
About Dundee Energy Limited
Dundee Energy Limited is a Canadian-based oil and natural gas
company with a mandate to create long-term value for its
shareholders through the exploration, development, production and
marketing of oil and natural gas, and through other high impact
energy projects. Dundee Energy holds interests, both directly and
indirectly, in the largest accumulation of producing oil and gas
assets in Ontario and, through a
preferred share investment, in certain exploration and evaluation
programs for oil and natural gas offshore Tunisia.
Forward-Looking Statements
This press release contains forward-looking information and
forward-looking statements which reflect the current view of
Dundee with respect to the
Corporation's objectives, plans, goals, strategies, financial
condition, performance and prospects. Wherever used, the words
"may", "will", "anticipate", "intend", "estimate", "expect",
"plan", "believe" and similar expressions identify forward-looking
statements and forward-looking information. Forward-looking
statements and forward-looking information should not be read as
guarantees of future events, performance or results, and will not
necessarily be accurate indications of whether, or the times at
which, such events, performance or results will be achieved. All of
the statements in this press release containing forward-looking
statements or forward-looking information, if any, are qualified by
these cautionary statements.
Forward-looking statements and forward-looking information are
based on information available at the time they are made,
underlying estimates, opinions and assumptions made by management
and management's current good faith belief with respect to future
strategies, prospects, events, performance and results and are
subject to inherent risks and uncertainties surrounding future
expectations generally. Such risks and uncertainties include, but
are not limited to, risks relating to any liquidation, sale or
restructuring of the Corporation or its business or assets or the
results thereof, the Corporation's inability to achieve its
objectives in the SSP, the receipt of Court approval of the SSP and
any successful bid under the SISP, the Corporation's relationship
with potential bidders seeking to acquire its business or assets as
part of the SSP, the impact of the proceedings on the Corporation's
creditors and other stakeholders, risks related to the timing and
completion of the transactions and proceedings described herein (if
at all), the realization amount resulting from any transaction, an
inability to continue meeting TSX listing requirements and/or other
adverse impacts on the trading or liquidity of the Corporation's
securities on the TSX, uncertainties relating to the availability
or costs of financing if required in the future, a decline in
general economic conditions, consumer confidence, oil and gas
industry risks, the Corporation's inability to successfully
implement its strategies and plans, the Corporation being unable to
generate the necessary cash flows and earnings to satisfy its
obligations and pursue its objectives, changes in consumer shopping
patterns or preferences, reliance of a few key members of
management, increased write-downs or impairment changes on the
Corporation's assets, changes or disruptions in the credit or
securities markets, or any other material disruption to or decline
in the Corporation's operations. For additional information
with respect to these and other risks and uncertainties relating to
Dundee, reference should be made
to Dundee's most recent annual
information form, quarterly and annual reports and financial
statements and notes thereto, and supplementary information, which
are available on SEDAR at www.sedar.com and in the Investor
Relations section of the Corporation's website at
www.dundee-energy.com. Additional risks and uncertainties not
presently known to the Corporation or that Dundee currently believes to be less
significant may also adversely affect the Corporation.
Dundee cautions readers that
such factors and uncertainties are not exhaustive and that should
certain risks or uncertainties materialize, or should underlying
estimates or assumptions prove incorrect, actual strategies,
prospects, events, performance and results may vary significantly
from those expected. There can be no assurance that the actual
strategies, prospects, results, performance, events or activities
anticipated by the Corporation will be realized or, even if
substantially realized, that they will have the expected
consequences to, or effects on, the Corporation. Readers are urged
to consider these factors carefully in evaluating forward-looking
information and forward-looking statements and are cautioned not to
place undue reliance on any forward-looking information or
forward-looking statements. Dundee
disclaims any intention or obligation to update or revise any
forward-looking information or forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by applicable laws.
SOURCE Dundee Energy Limited