Business
High Arctic Announces Closing of Restructuring Transactions in Escrow
High Arctic Announces Closing of Restructuring Transactions in Escrow
About this update from High Arctic Energy Services Inc
[{"type":"text","content":"\n\n\n\n May 3, 2010 (Canada NewsWire Group) -- /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/\n\n High Arctic Energy Services Inc. (TSX: HWO) ("High Arctic" or the "Corporation") today announced that on April 30, 2010, it closed in escrow the restructuring transactions previously announced on April 9, 2010 (the "Restructuring Transactions"). All documents held in escrow will be released and the Restructuring Transactions will be completed once certain conditions of the Toronto Stock Exchange ("TSX") to acceptance of the Restructuring Transactions have been satisfied, expected on or before May 14, 2010.\nMichael Binnion, Chairman of the Board of Directors, commented "We are very pleased that, upon completion of these transactions, we will have successfully restructured our balance sheet with net debt now reduced to under two times EBITDA. The Board of Directors is satisfied that we have preserved a significant amount of the equity on behalf of common shareholders while reaching an agreement that respected the position of creditors. We thank the many employees and stakeholders that have put the company first and helped us accomplish this watershed transaction. We look forward to the challenges of running and growing the business."\nThe TSX has granted the Corporation a conditional exemption from the securityholder approval requirements with respect to the Restructuring Transactions pursuant to the financial hardship exemption contained under section 604(e) of the TSX Company Manual. Pursuant to the TSX Company Manual, an application under section 604(e) automatically results in a listing review to confirm that High Arctic continues to meet TSX listing requirements, which High Arctic understands has been initiated. High Arctic believes that it complies with the applicable TSX listing requirements and expects to continue to comply with such requirements following the Restructuring Transactions.\nUpon satisfaction of the escrow conditions to completion of the Restructuring Transactions, High Arctic will:\n\n\n >\n\n\nRestructuring of the Corporation's Senior Credit Facilities\n\nAs part of the overall Restructuring Transactions, the Corporation en...