Royal Helium Limited (TSXV:RHL) et al., CCAA

Royal Helium Limited (TSXV:RHL) et al., Canada’s first publicly-listed helium producer and various related entities, had their NOI proceedings continued under the CCAA on February 19.

In October 2023, Royal Helium, through its subsidiary Imperial Helium, commissioned a state-of-the-art helium purification facility in Steveville, Alberta. However, the commissioning was ultimately a failure despite the companies spending millions in labour and overhead. The cost overruns resulted in a liquidity crisis.

Since September 2024, the companies have been working cooperatively with their fulcrum secured creditors, CWB and BDC, to address their liquidity issues. However, in early January, CWB and BDC delivered notices of intention to enforce their security under the BIA, ultimately leading to the NOI filings.

Following the NOI filings, the company and the lenders entered into negotiations, culminating in the agreement to continue the proposal proceedings under the CCAA. The purpose of the CCAA proceedings is to conduct a SISP with the aim of continuing the business. CWB and BDC are providing a DIP loan.

A&M is the monitor.

Counsel is Reconstruct for the companies, BDP for the monitor, Loopstra Nixon for the DIP lender, Cassels for BDC and McCarthy Tétrault for CWB.