March 4, 2019
Divestco (TSX:DVT), a Calgary, Alberta-based energy geoscience services company that provides a comprehensive and integrated portfolio of data software and services to the oil and gas industry, filed for protection under the CCAA on March 4, listing approximately $20.9MM in liabilities. The company has been significantly impacted by the ongoing financial downturn affecting the oil and gas industry in Canada. This decrease in revenue, coupled with legacy administrative overheads, has placed significant stress on the company's cash flow. As a result, the company has needed to raise significant amounts of capital to fund the business losses, placing the company at a competitive disadvantage. The holders of secured loans that had been funding the company to continue its operations are no longer willing to provide further funding without a restructuring. Through these CCAA proceedings, the company expects to secure commitments for up to an aggregate amount of $1.5MM in DIP financing from certain of its directors, officers and existing shareholders. Grant Thornton was appointed monitor. Field Law is counsel to the company.