October 2, 2019
Bellatrix Exploration (TSX: BXE), a Calgary, Alberta-based oil and gas company, obtained protection under the CCAA on October 2. Facing declining revenues and increasing liquidity challenges as a result of prolonged difficult market conditions, the company made several attempts to improve its capital structure. In June 2019, the company completed a recapitalization transaction pursuant to a CBCA plan of arrangement that, among other things, reduced its debt obligations by approximately $110.0 million. Despite this, commodity prices have slid lower in the last several months, resulting in a near term liquidity crisis. In light of these challenges, the company sought creditor protection to provide stability for the business, additional time to pursue a sale and investment solicitation process and time to advance potential restructuring alternatives. The CCAA proceedings will also give the company access to much needed interim financing. PwC is the monitor. Counsel is Goodmans for the company and BLG for the monitor.