Oilexco receives court, creditor approval for CCAA plan of arrangement

By Caroline Salls

Pittsburgh, Sept. 29 - Oilexco Inc. said creditors are slated to receive roughly $0.015 on the dollar based on filed claims under a plan of compromise and arrangement that has been approved by creditors and the court, according to a company news release.

The company said no assets will be available for distribution to existing shareholders.

According to the release, creditors have claimed roughly $1.2 billion of total debt, although the claims are still being reviewed.

Oilexco said the creditor claims will be satisfied in full from liquidation proceeds. Timing for distributions will depend on the final claims resolution.

Under the plan, the company has changed its name to ScotOil Petroleum Ltd. and consolidated its outstanding shares on the basis of one post-consolidation common share for every 10 pre-consolidation common shares.

At this time, Oilexco said its board has not developed a strategy or a business plan for ScotOil, which has a $400 million capital loss carry forward and a $49 million operating loss carry forward.

However, the company did say that ScotOil will attempt to identify a new business opportunity focused in Canada and secure funding for it.

The company said its remaining assets include an estimated $15.5 million of cash and an apartment in London, which is scheduled to be sold for $3.5 million.

In addition, Oilexco said the TSX Venture Exchange plans to change the trading halt on the company's shares to a suspension since the company does not have a transfer agent.

Although its shares are trading on the Pink Sheets, the company said this listing was not authorized by the board of directors, and Oilexco has no plans to attempt to continue trading on the Pink Sheets.

Oilexco, 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, obtained Companies' Creditors Arrangement Act protection in February 2009.

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