Oilexco granted CCAA protection in Canada

By Caroline Salls

Pittsburgh, Feb. 6 - Oilexco Inc. obtained a court order Friday for protection under the Companies' Creditors Arrangement Act (Canada), according to a company news release.

Ernst & Young Inc. was appointed as the company's monitor.

According to the release, the order permits Oilexco, including its wholly owned Alberta subsidiary Oilexco Technical Services Inc., to remain in possession and control of its property, carry on its business, retain employees and other service providers and restructure its operations.

In addition, the CCAA protection stays creditors and other parties from taking any actions against Oilexco.

However, the company said the order does not affect rights of the Royal Bank of Scotland plc and other lenders to shares of Oilexco's wholly owned U.K. subsidiary, Oilexco North Sea Ltd., which were pledged by Oilexco as security for its obligations as guarantor of amounts owed by Oilexco North Sea under a $547.5 million senior and super senior credit facility and £100 million pre-development credit facility.

Oilexco is a Calgary, Alta.-based oil and gas exploration and production company active in the United Kingdom, specifically in the Outer Moray Firth and Central Graben areas of the U.K. central North Sea.

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