CALGARY, AB, Dec. 2, 2020 /CNW/ - Calfrac Well Services Ltd.
("Calfrac" or the "Company") (TSX: CFW) is announcing
that yesterday it prevailed in its request for entry of an order
under Chapter 15 of the United States Bankruptcy Code
("Chapter 15") recognizing and granting enforcement of
the final order of the Court of Queen's Bench of Alberta approving the Company's Plan of
Arrangement under the Canada Business Corporations Act (the
"Final Order"), despite Wilks Brothers LLC's objection to
the entry of the Chapter 15 order.
On July 13, 2020, Calfrac and
certain related entities applied for recognition and Chapter 15
relief before the United States Bankruptcy Court in the Southern
District of Texas, including
requesting: (a) a "provisional stay" of all enforcement actions by
certain categories of creditors, (b) recognition of Calfrac's
reorganization proceeding pending at such time before the Court of
Queen's Bench of Alberta pursuant to the Canada Business
Corporations Act (the "CBCA Proceeding"), and (c)
enforcement in the United States of the preliminary interim order
issued pursuant to the CBCA Proceeding (the "Preliminary Interim
Order"). On July 14, 2020, the U.S. court granted
Calfrac's request for the provisional stay pending a subsequent
hearing on the matter. Following such hearing on September 1, 2020,
the U.S. court granted the request for a recognition order
regarding the CBCA Proceeding and the Preliminary Interim
Order.
The entry of the Chapter 15 recognition order yesterday fully
enforces the provisions of the Final Order and effectively blocks
any enforcement actions against the U.S.-located assets of Calfrac
and its subsidiaries as a result of the consummation of Calfrac's
Amended Recapitalization Transaction, including with injunctions
from a U.S. federal court.
The Company intends to complete the Amended Recapitalization
Transaction as soon as is practicable, subject to the satisfaction
or waiver of the other conditions to the implementation of the Plan
of Arrangement. Calfrac will provide further updates in respect of
the completion of the Amended Recapitalization Transaction as
matters evolve.
Calfrac's common shares are publicly traded on the Toronto Stock
Exchange under the trading symbol "CFW". Calfrac provides
specialized oilfield services to exploration and production
companies designed to increase the production of hydrocarbons from
wells drilled throughout western Canada, the United
States, Argentina and
Russia.
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify forward-looking information or statements.
More particularly and without limitation, this press release
contains forward-looking statements and information relating to the
expected process for and timing of completing the proposed Amended
Recapitalization Transaction and Calfrac's expectations and
intentions with respect to the foregoing.
These forward-looking statements and information are based on
certain key expectations and assumptions made by Calfrac in light
of its experience and perception of historical trends, current
conditions and expected future developments, as well as other
factors it believes are appropriate in the circumstances,
including, but not limited to, that the Amended Recapitalization
Transaction will be completed as proposed.
Although Calfrac believes that the expectations and assumptions
on which such forward-looking statements and information are based
are reasonable, undue reliance should not be placed on the
forward-looking statements and information, as Calfrac cannot give
any assurance that they will prove to be correct. Since
forward-looking statements and information address future events
and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks.
These include, but are not limited to, risks associated with:
Calfrac's ability to continue to manage the effect of the COVID-19
pandemic on its operations; actions taken by Wilks Brothers, LLC;
decisions by securities regulators and/or the courts; default under
the Company's credit facilities and/or the Company's senior secured
notes due to a breach of covenants therein; failure to reach any
additional agreements with the Company's lenders; the impact of
events of default in respect of other material contracts of the
Company, including but not limited to, cross-defaults resulting in
acceleration of amounts payable thereunder or the termination of
such agreements; failure to receive any applicable regulatory,
court, third party and other stakeholder approvals in respect of
the Amended Recapitalization Transaction; global economic
conditions; along with those risk and uncertainties identified
under the heading "Risk Factors" and elsewhere in the Management
Information Circular dated August 17,
2020, as supplemented by the Material Change Report dated
September 25, 2020, and the Company's
annual information form dated March 10,
2020, each as filed on SEDAR at www.sedar.com.
The forward-looking statements and information contained in this
press release are made as of the date hereof and Calfrac does not
undertake any obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws. This press release is not an offer of
securities for sale in the United
States. Securities may not be offered or sold in
the United States absent an
exemption from registration under the Securities Act of 1933.
SOURCE Calfrac Well Services Ltd.