2013-08-27 20:04:36 -
Calgary, Alberta CANADA, August 27, 2013 /FSC/ - Western Plains Petroleum Ltd. (WPP - TSX Venture), ("Western Plains" or the "Company") announced that it has filed with the Office of the Superintendent of Bankruptcy, a Notice of Intention to File ("Notice of Intention") a Proposal under Part III of the Bankruptcy and Insolvency Act (Canada) ("BIA"). As a consequence of such filing, any and all recourses of the Company's creditors are stayed for an initial period of thirty (30) days, which may be extended by the Court of Queen's Bench of Alberta. The Company is not currently in a position to meet the obligations owing to its secured and unsecured creditors and as such, has taken this action under the
BIA as the most expeditious and economical manner of addressing the interests of its creditors and allowing it to carry on its operations. The filing of the Notice of Intention was made with the consent of the Company's lender, Canadian Western Bank, which, as previously announced by the
Company, has made demand upon the Company for payment in full of its outstanding indebtedness.
Western Plains expects to file a formal proposal under the BIA, setting forth a comprehensive plan for payment to its creditors in due course. In connection with the foregoing, the Grant Thornton Alger Inc., of Calgary, Alberta, has been named as proposal trustee in the Notice of Intention (the "Proposal Trustee"), and in that capacity will monitor and assist the Company in its restructuring efforts.
The filing of the Notice of Intention has the effect of imposing an automatic stay of proceedings that will protect the Company and its assets from the claims of creditors and others while the Company pursues its restructuring efforts. There can be no guarantee that the Company will be successful in its restructuring efforts. Failure by the Company to achieve its restructuring goals will likely result in the Company becoming bankrupt.
Trading will resume in the common shares of the Company on the TSX Venture Exchange on Thursday, August 29th, 2013.
All inquiries regarding the BIA proceedings should be directed to Nathan Bell of Grant Thornton at 403-260-2529 or email@example.com
About Western Plains Petroleum Ltd.
Western Plains is a Lloydminster, Alberta, based junior heavy oil producer with interests located in the Lloydminster area in both Saskatchewan and Alberta. The Company currently has three directors.
For more information, please contact:
President, Chief Executive Officer and Director
Telephone: (780) 205- 4468
Western Plains Petroleum Ltd.
#202, 5004 - 18 Street
Lloydminster, AB T9V 1V4
Telephone: (780) 871-0725
Fax: (780) 808 - 8038
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Western Plains assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Western Plains. Additional information identifying risks and uncertainties is contained in filings by Western Plains with the Canadian securities regulators, which filings are available at www.sedar.com.
To view this press release as a PDF file, please click on the following link:
Source: Western Plains Petroleum Ltd. (TSX-V WPP) www.westernplainspetroleum.com
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