Independent Energy Corp., a Calgary, Alberta-based energy company, obtained CCAA protection on June 21. The company primarily focuses on the development of environmentally friendly micro-refineries utilizing proprietary technology and high operational standards. Its first and main project is a micro-refinery in Kerrobert Saskatchewan (the “Kerrobert Refinery”). The construction of Phase 1 is substantially complete and the Kerrobert Refinery is anticipated to begin commercial production in early July 2023. Construction at the Kerrobert Refinery occurred at the height of the COVID-19 pandemic. The company experienced cost overruns in the construction phase due in large part to: a) difficulties and delays in sourcing material and equipment due to the global supply chain shortages; and b) difficulties sourcing consistent labour due to the lockdown, site personnel capacity restrictions and quarantine requirements. As a result, the Kerrobert Refinery took almost twice as long to construct than anticipated. The company attempted to mitigate the construction cost overruns and its liquidity problems, but was ultimately unsuccessful in raising additional funds through the capital markets. A strategic process commenced in December 2022 similarly did not result in additional financing or provide an acceptable transaction for the company. EY is the Monitor, represented by Norton Rose Fulbright. Fasken is counsel for the company and Cassels is counsel for Cortland Credit Lending Corporation (the DIP lender).

By: Dina Milivojevic