Canada-headquartered heavy transport and crane services provider Entrec has started court-supervised restructuring proceedings.
As part of the process, Entrec will consider the sale of all or a portion of the business, its assets, shares and its subsidiaries. It will also consider a refinancing, recapitalisation or other restructuring transaction.
The company obtained an initial order from the Court of Queen’s Bench of Alberta, which commended the proceedings under the Companies’ Creditors Arrangement Act (CCAA) – a Canadian federal act that allows financially troubled corporations to restructure their business and financial affairs.
According to Entrec, this means that the company and its subsidiaries are able to continue operating without disruption while the process takes place.
For its US operations, Entrec is seeking an immediate provisional recognition of the initial order under Chapter 15 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, USA.
In light of industry challenges facing the Western Canadian oil and natural gas sector, Entrec believes that the commencement of the CCAA proceedings will provide the company with “the time and stability required to continue operating its business while it works to implement the restructuring and achieve an outcome that is in the best interests of Entrec and its stakeholders”.