Energera placed into receivership, loses bid for CCAA protection

Energera Inc. and its affiliates, an Alberta-based oilfield services company with operations across Canada, the United States, and South America, was placed into receivership on March 17 on application by Royal Bank of Canada as agent for a syndicate of lenders, owed over $39 million. The receivership order was made over a competing application by Energera for a debtor-led process under the Companies’ Creditors Arrangement Act, with the Court finding that a receiver-driven sale process was more appropriate following a failed pre-filing sale process and deteriorating lender relationship.

Energera is an oilfield services company headquartered in Spruce Grove, Alberta. It operates in several Canadian provinces and US states as well as in South America through a majority owned subsidiary based in Argentina. Energera employs over 130 people, with approximately half based in Alberta.

Under a June 28, 2024 amended and restated credit agreement, the syndicate provided a non-revolving facility of up to $49.7 million, alongside a $7.5 million operating facility from RBC. Energera breached multiple financial covenants, including its EBITDA-to-debt ratio, triggering events of default.

The parties entered into a forbearance agreement on February 14, 2025, which was amended five times. During this period, A SISP was conducted with outreach to 187 parties. Despite engagement from multiple bidders, no proposal approached full repayment of the secured debt. A subsequent “white knight” bid received on March 5, 2026 also fell materially short and included a significant termination fee, rendering it unacceptable to the lenders.

Energera ceased making principal payments after September 30, 2025, while continuing interest payments. The company also agreed to a consent receivership order and undertook not to oppose enforcement.

RBC sought the appointment of a receiver over Energera and related entities after issuing enforcement notices and demanding repayment in early February 2026. Outstanding indebtedness exceeded $39 million at the time of the application. Energera opposed the application and instead sought an initial order under the CCAA, arguing it should be permitted to run a court-supervised SISP under existing management.

The Court ultimately appointed a receiver, emphasizing that Energera had already run a SISP and failed to deliver a viable outcome, and that there was no evidence that management would achieve a different outcome under Court supervision. The Court also pointed out that a CCAA process would introduce additional charges and professional costs that would effectively be borne by secured lenders (the only stakeholder group with a meaningful economic interest) unlikely to be repaid in full. Energera had already agreed to a consent receivership order as part of the forbearance framework, lending further support for the Court’s decision.

A&M is the receiver, while RJT Restructuring was the proposed monitor. Counsel is Norton Rose Fulbright for RBC as agent, Blue Rock Law for Energera, and Torys for the proposed monitor.