Business
Calfrac Files Circular for Recapitalization Transaction; Confirms Key Information; and Sets the Record Straight about Wilks Brothers
Calfrac Files Circular for Recapitalization Transaction; Confirms Key Information; and Set...
About this update from Calfrac Well Services Ltd.
[{"type":"text","content":"\n\n\n\nCalfrac Files Circular for Recapitalization Transaction; Confirms Key Information; and Sets the Record Straight about Wilks Brothers\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, AB, Aug. 21, 2020\n\n\n\nThe Recapitalization Transaction remains the only transaction being voted upon, notwithstanding other contrary assertions in the media. The Recapitalization Transaction already has the contractual support of 78% of Senior Unsecured Noteholders and 23% of Shareholders. The board of directors of Calfrac unanimously recommends that all Senior Unsecured Noteholders and Shareholders of Calfrac VOTE FOR the Recapitalization Transaction, as proposed. The Recapitalization Transaction is the only available alternative to potentially very adverse outcomes for Calfrac and its stakeholders. CALGARY, AB, Aug. 21, 2020 /CNW/ - (TSX: CFW) Calfrac Well Services Ltd. (\"Calfrac\" or the \"Company\") announced today that it has filed a Management Information Circular (the \"Information Circular\") with respect to its previously announced Recapitalization Transaction and the upcoming Meetings of Senior Unsecured Noteholders and Shareholders (the \"Meetings\"), to be held in Calgary on September 17, 2020.The Information Circular has been posted on SEDAR and the Company's website.\nThe reasons that the Recapitalization Transaction is necessary are well-known: the energy demand destruction resulting from the COVID-19 pandemic; a significant global oil price war during 2020; and dramatically lower customer demand for oilfield services.\nCalfrac now has more indebtedness than is sustainable, notwithstanding extensive prior efforts to reduce its debt. Calfrac's capital structure and liquidity position are no longer tenable, and without the Recapitalization Transaction, Calfrac would have insufficient financial flexibility to advance its business going forward. The Recapitalization Transaction resolves the Company's capital structure and liquidity issues.\nThe Recapitalization Transaction is the result of an extensive review of alternatives, an...