Receiver appointed for Canada's Twin Butte Energy

Published 2016-09-02, 05:26 p/m
© Reuters.  Receiver appointed for Canada's Twin Butte Energy
TBE
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CALGARY, Alberta, Sept 2 (Reuters) - Twin Butte Energy TBE.TO , which became the latest Canadian oil and gas producer to file for bankruptcy this week, said on Friday an Alberta court had appointed FTI Consulting as receiver for its assets.

Twin Butte, whose fortunes have fallen sharply over the past two years as oil prices declined, said on Tuesday it would file for bankruptcy after its debenture holders rejected a takeover bid from Hong Kong's privately held Reignwood Resources Holding Pte. Shareholders had voted in favor of the deal. Consulting will manage the assets, property and operations of Twin Butte, the company said in a statement. All of the Calgary-based company's directors including President and Chief Executive Rob Wollman have resigned, it added.

As of Aug. 1, 90 North American energy producers, including eight Canadian companies, have filed for bankruptcy since the beginning of 2015, according to the latest data from U.S. law firm Haynes and Boone.

After rejecting the Reignwood deal, Twin Butte debenture holders presented an alternative restructuring proposal to the company's board, claiming it offered a viable solution for all security holders. Butte focuses on medium and heavy oil operations around the Alberta-Saskatchewan border in western Canada. It produced around 13,000 barrels of oil equivalent per day in the second quarter, down 27 percent from the same period in 2015.

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