Business
Wilks Brothers Provides Answers to Frequently Asked Questions Regarding Calfrac and Wilks' Premium Offer
Wilks Brothers Provides Answers to Frequently Asked Questions Regarding Calfrac and Wilks...
About this update from Calfrac Well Services Ltd.
[{"type":"text","content":"Wilks-Calfrac-Premium\n \n \n \n Wilks Brothers Provides Answers to Frequently Asked Questions Regarding Calfrac and Wilks' Premium Offer\n \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.prnml40{\nMARGIN-LEFT:3.33em\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n CISCO, TX, Oct. 2, 2020\n \n \n \n \n \n CISCO, TX\n \n ,\n \n Oct. 2, 2020\n \n /CNW/ - Wilks Brothers, LLC (\"Wilks\") appreciates the overwhelming support from the Shareholders of Calfrac Well Services Ltd. (\"Calfrac\" or the \"Company\") (TSX: CFW) and today provided answers to some of the most frequently asked questions about Calfrac and Wilks'\n \n $0.18\n \n cash Premium Offer for the common shares of Calfrac.\n \n \n \n \n \n \n \n \n \n 1.\n \n Why did Wilks make the Premium Offer?\n \n \n \n Wilks made the Premium Offer to provide Shareholders with an actionable alternative to the Management Transaction and to neutralize the threat from Calfrac that, if Shareholders do not approve the Management Transaction, they will be left with no recovery. Calfrac should not be able to threaten its way into a transaction that benefits\n \n only\n \n its executive chairman and a self-selected group of unsecured creditors.\n \n \n As Wilks has said in its previous press releases, options create value; the launch of the Premium Offer focused the Board and management of Calfrac on the importance of creating value for Shareholders. Clearly it worked.  Calfrac was forced to go back to the drawing board and improve their own transaction terms. Unfortunately, the Amended Management Transaction announced by Calfrac still does not deliver adequate value to Shareholders and is significantly inferior to Wilks' Premium Offer.  The only benefit of the Amended Management Transaction is that it has focused the debate on the essential issues: value and fairness.\n \n \n 2.\n \n Calfrac has announced that if their Amended Management Transaction is not implemented, they will cause the\n \n original\n \n Management Transaction to be implemented through proceedings under the CCAA. Is it fair and legal for Calfrac to try to do t...