Twin Butte lenders agree to extend non-revolving facility by one month

By Marisa Wong

Morgantown, W.Va., May 2 – Twin Butte Energy Ltd. said its bank syndicate has agreed to extend the maturity date of its C$85 million non-revolving credit facility to May 31, 2016 from April 30, 2016 to enable the company to continue with its strategic alternatives process.

Strategic alternatives may include a debt restructuring, a sale of all or a material portion of the company’s assets, the outright sale of the company or merger or other transaction, according to a company news release.

As announced on Dec. 9, Twin Butte engaged Peters & Co. Ltd. and National Bank Financial Inc. as its financial advisors in connection with its strategic alternatives process.

The company said that within the context of the ongoing strategic alternatives process, the current low oil price environment and the May 31 debt repayment milestone, there is uncertainty surrounding its ability to continue as a going concern.

While the company is in discussions with its lenders, failure to repay the non-revolving facility will constitute an event of default and entitle the syndicate to exercise its remedies under the credit facility, including acceleration of the credit facility and realization over the assets of the company.

Twin Butte is an oil and gas company based in Calgary, Alta.

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