Business
Barksdale Update on Debt Investment
VANCOUVER, BC / ACCESSWIRE / October 20, 2021 / Barksdale Resources Corp. (" Barksdale " or ...
About this update from Barksdale Resources Corp.
[{"type":"text","content":"Barksdale Update on Debt InvestmentVANCOUVER, BC / ACCESSWIRE / October 20, 2021 / Barksdale Resources Corp. (\"Barksdale\" or the \"Company\") (TSXV:BRO)(OTCQX:BRKCF) is pleased to provide an update regarding the secured loans (\"Secured Loans\") that it holds in Regal Resources Inc (\"Regal\").As part of its bid to consolidate 100% of the Sunnyside project his summer, Barksdale acquired existing secured loans from a former creditor of Regal. The Secured Loans were subject to a pre-existing forbearance agreement that expired on October 2, 2021. Regal failed to make the required payments and on Monday October 4, 2021 Barksdale sent Regal a Default Notice in relation to the Secured Loans as well as a Notice of Intention to Enforce Security. On October 14, 2021 Regal filed a Notice of Intention to Make a Proposal under the Canadian Bankruptcy and Insolvency Act (\"BIA\").As of October 19, 2021, Regal owes approximately $1.8 million to Barksdale pursuant to the Secured Loans. According to its filings under the BIA, Regal collectively owes approximately $2.8 million to five creditors, including Barksdale. Regal has until October 24, 2021 to file a cash-flow forecast that needs to be reviewed and signed by its proposal trustee. By November 13, 2021, Regal must file a proposal with its creditors, must obtain an extension of time from the courts or seek some other relief.If Regal is unable to repay its creditors or fails to put forward a proposal that is accepted by the creditors, it will enter bankruptcy. If this occurs, a trustee will take possession and control of the assets of Regal and secured creditors can realize on their security. The trustee, or the secured creditors, could then initiate a liquidation process to sell Regal's assets to repay creditors.Despite Regal's filing under the BIA, Barksdale's 51% ownership in Arizona Standard LLC, the joint-venture company that owns 100% of Sunnyside, is secure. Additionally, the option agreement that Barksdale (through its US subsidiary) has with Regal's US subsidiary remains in full force. If Regal's assets are sold, and Barksdale is not the party that buys them, Barksdale will simply have a new joint-venture partner at Sunnyside. The joint-venture agreement would not be affected by a liquidation process. If Regal's assets are sold and Barksdale is the acquiring party, Barksdale would...