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Oil sands junior producer Connacher files for creditor protection

Published 2016-05-16, 04:25 p/m
© Reuters. Oil sands junior producer Connacher files for creditor protection
CLC
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CALGARY, Alberta, May 16 (Reuters) - Junior oil sands
producer Connacher Oil and Gas Ltd CLC.TO filed for protection
from creditors at an Alberta court on Monday, making it the
latest Canadian victim of the two-year slump in global crude
prices.
The Calgary-based company said depressed oil prices and
difficulties accessing capital markets had prompted directors to
seek protection under the Companies' Creditors Arrangement Act
(CCAA).
CCAA is an insolvency law in Canada that allows companies to
restructure their finances and stay in business.
Connacher temporarily cut production at its Great Divide oil
sands project in northern Alberta earlier in the first quarter
of this year to around 3,000-4,000 barrels per day from 8,000
bpd in response to tumbling oil prices.
The company also briefly shut some production two weeks ago
as a precaution against a massive wildfire burning around Fort
McMurray.
Connacher said some of its existing lenders had committed to
providing up to $20 million in interim financing to support
operations, and obligations will continue to be met as it goes
through the CCAA process.

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