CALGARY, AB, Feb. 9, 2021 /CNW/ - Calfrac Well Services Ltd.
("Calfrac" or the "Company") (TSX: CFW) had applied
to the U.S. District Court for the Southern District of
Texas to dismiss, on an expedited
basis, a further appeal (the "Appeal") filed by Wilks
Brothers, LLC ("Wilks Brothers"). This appeal relates
to the order of the U.S. Bankruptcy Court for the Southern District
of Texas which granted enforcement
in the United States of Calfrac's
Plan of Arrangement under the Canada Business Corporations
Act (the "U.S. Enforcement Order").
Calfrac's motion to dispose of this matter today was, however,
denied. The full Appeal will therefore be heard by the District
Court at a future date. Calfrac is well-positioned to oppose the
Appeal by Wilks Brothers and looks forward to the opportunity to
dispense with the Appeal on the merits.
Wilks Brothers has objected to essentially every application
that Calfrac has made in both Canada and the
United States. Accordingly, on December 11, 2020, Wilks Brothers filed an appeal
of the U.S. Enforcement Order before the U.S. District Court for
the Southern District of Texas.
On December 18, 2020, the Amended
Recapitalization Transaction that had been approved at all levels,
was consummated. On January 8,
2021, Calfrac filed a motion to dismiss the Appeal on the
basis of equitable mootness, because the Recapitalization
Transaction has already been completed pursuant to the Plan of
Arrangement. At a hearing held earlier today the U.S.
District Court denied Calfrac's motion to dismiss.
Calfrac will provide further information as the Appeal
proceedings move forward. As indicated, Calfrac will be vigorously
opposing the Appeal.
Calfrac's common shares and warrants are publicly traded on the
Toronto Stock Exchange under the trading symbols "CFW" and
"CFW.WT", respectively. 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 appeal of the US Enforcement Order 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.
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 or decisions in
respect of the Recapitalization Transaction or US Enforcement
Order; 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.