Razor Energy Corp. Announces the Filing of a Notice of Intention to Make a Proposal

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

CALGARY, Alberta, Jan. 31, 2024 (GLOBE NEWSWIRE) -- Razor Energy Corp. (together with its wholly-owned subsidiaries, Blade Energy Services Corp., Razor Royalties Limited Partnership, and Razor Holdings GP Corp., collectively, the “Corporation”) have each filed a Notice of Intention to Make a Proposal (the “Notice of Intention”) under the provisions of the Bankruptcy and Insolvency Act (Canada) (the “BIA”). Pursuant to the Notice of Intention, FTI Consulting Canada Inc. has been appointed as the proposal trustee in the Corporation's proposal proceedings and will assist the Corporation in its restructuring efforts. McCarthy Tétrault LLP is providing legal counsel to the Corporation.

The decision to file the Notice of Intention was made by the board in view of the effects of the ongoing dispute with the operator of the Judy Creek Gas Plant and the accompanying significant negative impact on the Corporation due to the Corporation having to shut in approximately 1,100 boepd production, together with other ongoing challenges within its business.

While subject to the Notice of Intention proceedings, the Corporation will continue with its efforts to pursue strategic alternatives. To this end, the Corporation has engaged Peters & Co. Limited to undertake a process to solicit bids in connection with a transaction or series of transactions that may include a sale or sales of the Corporation’s property, assets and undertaking, a financing or refinancing which may include an accompanying restructuring of the Corporation’s financial and contractual obligations, or a combination of any of the foregoing. Further details of the strategic alternatives process will be communicated in the near future.

A Notice of Intention is the first stage of a restructuring process under the BIA, which permits the Corporation to pursue a restructuring of its affairs. The filing of the Notice of Intention has the effect of imposing an automatic stay of proceedings ("Stay") that will protect the Corporation and its assets from claims and enforcement proceedings of creditors and contractual counterparties. During the Stay, subject to certain exceptions as set out in the BIA, no creditor has any remedy against the Corporation or its property and no person may terminate or amend any agreement, including a security agreement, or claim an accelerated payment, or a forfeiture of the term, under any agreement, including a security agreement, by reason only that the Corporation is insolvent or that the Notice of Intention has been filed. The initial Stay period is 30 days and may be extended by court order. There can be no assurance that the current process will result in a transaction or, if a transaction is undertaken, that it will be successfully concluded in a timely manner, or at all.