Business
High Arctic Announces further details on its Restructuring Plan
High Arctic Announces further details on its Restructuring Plan
About this update from High Arctic Energy Services Inc
[{"type":"text","content":"\n\n\n\nRED DEER, AB, Apr. 9, 2010 (Canada NewsWire Group) -- /CNW/ -- High Arctic Energy Services Inc. (TSX: HWO) (\"High Arctic\" or the \"Corporation\") today announced further details of its proposed restructuring plan previously announced on March 25, 2010. The plan is part of the effort to reduce debt levels and to meet the conditions imposed by the senior creditors for an extension of the senior credit facilities. Details of the Restructuring Plan The key elements of the restructuring plan are as follows:- a proposed issuance of 32,968,384 common shares of the Corporation(\"Common Shares\") to Jed Wood and J.M. Wood Investments Ltd.(collectively, the \"Wood Group\") at a price of $0.25 per Common Sharein settlement of all outstanding indebtedness and claims owing to theWood Group by the Corporation, at a settlement value of $8.2 million(the \"Shares for Debt Private Placement\");- a proposed conversion of the Corporation's outstanding unsecuredconvertible debentures in the principal amount of $27,900,000 (the\"Convertible Debentures\") to 111,592,001 Common Shares at a price of$0.25 per Common Share in full settlement of all currentlyoutstanding principal owing plus 12,089,132 Common Shares at a priceof $0.25 per Common Share in full settlement of all accrued interestowing thereunder to the holders of the Convertible Debentures (the\"Convertible Debenture Settlement\"); and- a proposed issuance of up to 12,630,740 Common Shares to its seniorlenders as consideration for a one year term loan to refinance theexisting senior credit facilities.The issue price for the Shares for Debt Private Placement and the Convertible Debenture Settlement represents a 5% discount to the volume weighted average trading price of the Common Shares on the TSX for the five days preceding the date when the Shares for Debt Private Placement and the Convertible Debenture Settlement were first announced.The Shares for Debt Private PlacementPursuant to a conditional agreement settlement agreement between the Corporation and the Wood Group, the Corporation has agreed to issue 32,968,384 Common Shares at a price of $0.25 per Common Share, to settle the outstanding amounts owned to the Wood Group.The Shares for Debt Private Placement is part of the overall restructuring plan and is subject to a number of conditions including:- the Corporation receiving c...