Twin Butte lenders consent to arrangement amendment, waive default

By Tali Rackner

Norfolk, Va., Aug. 15 – Twin Butte Energy Ltd. entered into an agreement with its senior lenders under which the lenders consented to the company entering into an amending agreement to its arrangement agreement with Reignwood Resources Holding Pte. Ltd. on Aug. 9, according to a press release.

The lenders also waived the event of default under the company's credit agreement announced on Aug. 9 related to the entering into of the amending agreement without prior lender consent.

In addition, the lenders agreed to continue to forbear from exercising their rights and remedies for certain other prior defaults under Twin Butte's credit agreement, provided that the company's previously announced plan of arrangement in respect of its and its securityholders and involving Reignwood and Reignwood Resources Trading UK Ltd., closes by Sept. 26.

The continuation of the forbearance is conditional upon, among other things, the deposit by Reignwood, in escrow, of $5 million by Sept. 8, in the event that securityholder and court approval for the arrangement has been received on or before certain dates. The escrowed amount will be used to fund the aggregate consideration payable by Reignwood pursuant to the arrangement.

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

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