Manitok Energy receiver appointed; company and units deemed bankrupt

By Caroline Salls

Pittsburgh, Feb. 21 – Manitok Energy Inc. announced Wednesday that the Court of Queen’s Bench of Alberta appointed Alvarez & Marsal Canada Inc. as receiver and manager of the assets, undertakings and properties of the company and its wholly owned subsidiary Raimount Energy Corp.

According to a news release, the court also terminated the time within which Manitok, Raimount and Corinthian Oil Corp. were permitted to file proposals to their creditors under section 50.4(11) of the Bankruptcy and Insolvency Act (Canada) and substituted Alvarez & Marsal Canada Inc. in place of FTI Consulting Canada Inc. as trustee in the bankruptcy of Manitok, Raimount and Corinthian.

As a result of the termination of the proposal period, Manitok, Raimount and Corinthian are deemed to be bankrupt, the release said.

All of the directors of Manitok, Raimount and Corinthian resigned as a result of the appointment of the receiver and the bankruptcy.

On Jan. 22, Manitok announced that it had submitted a notice of intention to submit a proposal under the Bankruptcy and Insolvency Act (Canada) after skipping a Nov. 15 payment on its collateralized exchange-listed notes (CEL notes) and receipt of a payment demand from its senior lender.

As previously reported, Manitok said it negotiated an agreement with a private Hong Kong-based corporation and its wholly owned Canadian subsidiary under which Manitok would acquire all the outstanding shares of the Canadian subsidiary, giving it access to C$21.7 million of cash, C$1.3 million in the form of a deposit held by Alberta Energy Regulator and some oil assets.

Subsequently, the potential investor told Manitok that it would not proceed with the acquisition unless Manitok was restructured to reduce its total debt.

On Dec. 29, the senior lender demanded repayment in full, terminated the credit facilities and sent to Manitok a notice of intention to enforce its security.

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

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