May 15, 2020

Filing Type:

Company Counsel: Miller Thomson

Trustee: Alvarez & Marsal

Trustee Counsel: Norton Rose Fulbright

Industry:

Province:

ENTREC, an Acheson, Alberta-based heavy haul transportation and crane solutions provider, obtained production under the CCAA on May 15. Operating from 11 locations across Canada and the US, the company began facing challenges in 2019 due to a number of negative macro-economic factors, including pipeline constraints, discounts in the market price for oil produced in western Canada, rising carbon taxes and increased regulatory requirements. The recent COVID-19 global pandemic, a historic decrease in oil demand and the Russian-OPEC oil price war have also contributed to the company's challenges. Despite efforts to restructure its balance sheet, the company remains in default on its lending facilities. On May 14, Wells Fargo, as agent for the syndicate, issued demands for the approximately CAD $72.3 million and US $12.7 million owing to the syndicate, prompting the company to seek creditor protection. While under creditor protection, the company will explore a Court supervised formal sale and investment solicitation process or plan of arrangement. Alvarez & Marsal was appointed monitor. PwC is financial advisor for the lending syndicate. Canadian counsel is Miller Thomson for the company, Norton Rose Fulbright for the monitor, Bennett Jones for the lending syndicate, Ogilvie for the directors and officers and McLennan Ross for CWB,

Close Menu