Lone Pine Resources seeks U.S. recognition of DIP financing agreement

By Jim Witters

Wilmington, Del., Oct. 7 - Lone Pine Resources, Inc.'s foreign representative is seeking U.S. recognition of the C$10 million debtor-in-possession financing facility a Canadian court approved, according to an Oct. 7 filing with the U.S. Bankruptcy Court for the District of Delaware.

Lone Pine Resources Canada Ltd., in its capacity as the authorized foreign representative, asked the U.S. Court to recognize the decision of the Court of Queen's Bench of Alberta to allow the debtors to borrow and grant liens on assets located in the United States.

Although the debtors have no operations in the United States, certain of the debtors do have assets in the United States, the filing states.

Under the DIP facility approved in the Companies' Creditors Arrangement Act proceedings, interest is Canadian prime plus 5%.

An upfront commitment fee of 2% is included, as is an undrawn fee of 75 basis points.

The DIP facility matures on the earlier of six months after the initial CCAA order and the effective date of any plan of arrangement sanctioned by the Canadian court.

A hearing on the recognition request is scheduled for 1 p.m. ET on Nov. 20.

Lone Pine is a Calgary, Alta., company engaged in the exploration and development of natural gas and light oil in Canada. The Chapter 15 case number is 13-12487.

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