Twin Butte Energy sale to HOC completed, interim distribution paid

By Caroline Salls

Pittsburgh, April 20 – An informal committee of Twin Butte Energy Ltd. 6.25% convertible subordinated debentureholders said the company’s court-appointed receiver certified that a sale of Twin Butte’s assets to HOC has been completed, and an interim distribution was made paying Twin Butte’s syndicate in full.

The committee said in a news release that the receiver’s third report indicates that the HOC transaction provides for a “substantial distribution” to unsecured creditors, including the debentureholder class.

The debentureholders said their successful campaign to reject a proposed transaction between Twin Butte and Reignwood Resources Holding Pte. Ltd. in favor of an alternate transaction will provide for a more equitable distribution to debentureholders.

The committee said it will now focus its attention on ensuring that the remaining distributions to the entire class of debentureholders are maximized, and the ongoing involvement of its financial and legal advisers will provide additional substantial benefit to all debentureholders by providing additional advice regarding the claims of other creditors in the anticipated creditor claims process and advising on and conducting further negotiations and/or litigation to take all necessary steps to enhance the position and recovery of all debentureholders.

Specifically, the committee said it expects these efforts may result in an improvement to each debentureholder’s recovery to a potential high-end recovery of $600 per $1,000 face value from a potential low-end recovery of $450 per $1,000 face value of debemtures.

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

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