Business
Crown Capital Provides Update on Loans to Petrowest Corporation and Acquisition of Civil Assets
Crown Capital Provides Update on Loans to Petrowest Corporation and Acquisition of Civil A...
About this update from Crown Capital Partners, Inc.
[{"type":"text","content":"\n\n\n\nCrown Capital Provides Update on Loans to Petrowest Corporation and Acquisition of Civil Assets\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, Nov. 3, 2017\n\n\n\nCALGARY, Nov. 3, 2017 /CNW/ - Crown Capital Partners Inc. (\"Crown\") (TSX: CRWN), which provides growth capital to successful mid-market companies, today provided an update on the restructuring of Petrowest Corporation (\"Petrowest\") (TSX:PRW). Crown Capital Fund IV, LP (\"Crown IV LP\") and a syndicate partner have a total of $27 million of loans outstanding to Petrowest, $25 million of which is due to Crown IV LP. Crown has an effective interest of approximately 36.5% in Crown IV LP.\n\nSince the application for receivership on August 15, 2017 and appointment of Ernst & Young Inc. (\"EY\") as court-appointed receiver, substantially all the assets of Petrowest have been prepared for sale or monetized. In relation to the sale and/or sale process, the Court of Queen's Bench of Alberta approved the following:\n\n\nRBee Aggregate Consulting Ltd. (\"RBee\"), a newly established company owned by Crown IV LP and management of the operations of RBee Crushing, will acquire Petrowest's Civil division as a going concern. The total consideration offered is $29.0 million, which includes the assumption of approximately $17.3 million of Crown IV LP's loans to Petrowest, subject to closing adjustments. The balance of the consideration will be funded with third-party bank debt. The collective investment of Crown IV LP and its syndicate partner in RBee will comprise a combination of a 50% equity interest in RBee with a cost base of $5 million and a $12.3 million interest-bearing, second-lien loan;\nRBee has made a bid to acquire Petrowest's Rental division as a going concern. The total consideration offered is $3.6 million, which includes the assumption of $2.2 million of Crown IV LP and its syndicate partner's loans to Petrowest. The balance of the consideration will be funded with third-party bank debt;\nTimber Pro Logging Ltd. will acquire Petrowest's Cutbank transportatio...