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Western Canada Energy Ltd. Updates Progress on Financial Issues and Restructuring Plan
Western Canada Energy Ltd. Updates Progress on Financial Issues and Restructuring Plan
About this update from Wescan Energy Corp.
[{"type":"text","content":"\nWestern Canada Energy Ltd. Updates Progress on Financial Issues and Restructuring Plan\n\n\n Aug. 18, 2009 (Filing Services Canada) -- Western Canada Energy Inc. (WCE - TSX Venture), provides the following update on its efforts to deal with current debt issues.The Company had received a letter from its banker advising that the availability under the credit facility would be reduced from $3.75 million to $3.2 million, effective August 1, 2009. The bank has accepted a request to defer the reduction to August 31, subject to a number of conditions including:1. The availability is limited to $3.6 million less 0.12 million outstanding on a Letter of Credit. The interest rate will be prime plus 5% and an extension fee of $15,000 is payable on acceptance.2. The Borrower must deliver certain documents relating to the retention of Steele Consulting and the progress by the Company on the restructuring initiative, by August 15. A Corporate Governance Agreement has also been signed with Steele Consulting Partnership and Avonlea Ventures Inc. to work with the Corporation to manage bank and other stakeholder agreements, advance the restructuring initiatives and identify corporate strategic alternatives. Some draft proposals are currently under review.The Corporate Governance Agreement will be posted on SEDARCertain statements contained herein constitute forward-looking statements. The use of any of the words \"anticipate\", \"continue\", \"estimate\", \"expect\", \"may\", \"will\", \"project\", \"should\", \"believe\", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. These statements speak only as of the date of this presentation. The Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN AND DOES NOT ...