ENTREC Granted Extension of Stay Period in CCAA Proceedings
ACHESON, Alberta, Aug. 06, 2020 (GLOBE NEWSWIRE) — ENTREC Corporation (“ENTREC” or the “Company”) has announced that it has obtained an extension of the stay period previously granted in an order from the Court of Queen’s Bench of Alberta (the “Court”) in support of its restructuring efforts under the Companies’ Creditors Arrangement Act (the “CCAA”). On May 15, 2020, ENTREC obtained an initial order (the “Initial Order”) from the Court commencing proceedings under the CCAA. Pursuant to the Initial Order, among other things, a stay of proceedings was granted in respect of the Company and its subsidiaries to allow them to continue to operate their business without disruption while ENTREC pursues potential strategic and restructuring alternatives, which may include a sale, investment or other restructuring transaction under Court supervision for the benefit of its stakeholders (the “Restructuring”). The Company also sought and received an immediate provisional recognition of the Initial Order in the United States under Chapter 15 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, USA (the “US Bankruptcy Court”). On May 25, 2020, ENTREC obtained an order that amended and restated the Initial Order of the Court to, among other things, extend the stay period provided by the Initial Order to August 7, 2020. On August 6, 2020, ENTREC obtained another order to, among other things, further extend the stay period provided by the Initial Order to September 11, 2020.As required by the CCAA, pursuant to the Initial Order, Alvarez & Marsal Canada Inc. (the “Monitor”) has been appointed as Monitor of the Company (including its subsidiaries) in its CCAA proceedings. The duties and powers of the Monitor are outlined in the Initial Order and the CCAA. Materials publicly filed in the CCAA proceedings, including copies of the Initial Order and the Restructuring, will be made available on the Monitor’s website at http://www.alvarezandmarsal.com/entrec.About ENTRECENTREC is a heavy haul transportation and crane solutions provider to the oil and natural gas, construction, petrochemical, mining and power generation industries.Forward-Looking StatementsCertain information contained in this press release may contain forward looking statements within the meaning of applicable securities laws. The use of any of the words “continue”, “plan”, “intend”, “explore”, “propose”, “would”, “will”, “believe”, “expect”, “position”, “anticipate”, “improve”, “enhance” and similar expressions are intended to identify forward-looking statements. More particularly and without limitation, this press release contains forward-looking statements concerning: the continuation of operations of business without disruption while ENTREC pursues potential strategic and restructuring alternatives; and the pursuit of potential strategic and restructuring alternatives, which may include a sale, investment or other restructuring transaction under Court supervision for the benefit of its stakeholders.Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. The above-mentioned forward-looking statements necessarily involve risks, including, without limitation, risks associated with: the ability of the Company to implement the Restructuring; the ability of the Company to find suitable buyers or investors or to obtain all necessary approvals in order to complete any sale or other restructuring transaction identified in connection with the Restructuring and the CCAA proceedings; the ability of the Company to operate in the ordinary course during the CCAA proceedings, including with respect to satisfying obligations to service providers, suppliers, contractors and employees; the ability of the Company to continue as a going concern; the Company’s future liquidity position, and access to capital, to fund ongoing operations and obligations; the ability of the Company to stabilize its business and financial condition; the ability of the Company to implement and successfully achieve its business priorities; the ability of the Company to continue meet the conditions for the support of its lenders for the Company’s Restructuring; the ability of the Company to comply with its contractual obligations, including, without limitation, its obligations under debt arrangements; the general regulatory environment in which the Company operates; the general economic, financial, market and political conditions impacting the industry and markets in which the Company operates; the ability of the Company to fund its operations with existing capital and/or raise additional capital to fund its operations; the ability of the Company to generate sufficient cash flow from operations; the impact of competition; the ability of the Company to obtain and retain qualified staff, equipment and services in a timely and efficient manner (including in light of the Company’s restructuring efforts); and the ability of the Company to retain members of the senior management team, including but not limited to, the officers of the Company.Events or circumstances may cause actual results to differ materially from those anticipated, as a result of the risk factors set out and other known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. In addition, forward looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect and which have been used to develop such statements and information in order to provide stakeholders with a more complete perspective on the Company’s future operations. Such information may prove to be incorrect and readers are cautioned that the information may not be appropriate for other purposes. Although the Company believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because the Company can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the impact of competition; the general stability of the economic environment in which the Company operates; and the timely receipt of any required regulatory approvals;Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Additional information on these and other factors that could affect the Company’s operations and financial results are included in reports, including under the heading “Business Risks” in the Company’s management’s discussion and analysis for the year ended December 31, 2019 that is on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) under the Company’s profile.Furthermore, the forward looking statements contained herein are made as at the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.For further information, please contact the Monitor, Alvarez & Marsal Canada Inc.Telephone: 1-888-368-7311
Email: [email protected].