Free Rein Resources Ltd., CCAA

Free Rein Resources Ltd. (“Free Rein”), a Calgary, Alberta-based oil and gas company, had its NOI proceedings continued under the CCAA, on application by Invico Diversified Income Limited Partnership by its general partner Invico Diversified Income Managing GP Inc. (“Invico”), owed over $6.1 million. The company filed an NOI in June, after a period of operational challenges resulted in lower than projected production levels and an inability to meet its obligations under its loan agreement with Invico. During the NOI proceedings, the company conducted a SISP with Invico acting as stalking horse bidder. The SISP resulted in two formal offers, but those offers were subsequently withdrawn after the shutdown of the Tidewater Gas Plant, where all of Free Rein’s production is processed, by its owner. Invico has proposed advancing its stalking horse bid on modified terms, in view of the material adverse change to Free Rein’s operations, through a structure that will allow Free Rein to continue as a going concern. Without the conversion to the CCAA proceedings, Free Rein would have been automatically bankrupt after December 12. Free Rein will use the CCAA proceedings to advance the proposed transaction with Invico. FTI was appointed monitor. Counsel is Cassels for the monitor, Fasken for Invico, and Burnet, Duckworth & Palmer for Free Rein. 

By: Dina Milivojevic