Calvalley Petroleum Inc. has successfully completed its previously announced restructuring and liquidation of the Company pursuant to a plan of arrangement involving Calvalley Energy Limited (a wholly-owned subsidiary of Calvalley organized in Cyprus) under the Canada Business Corporations Act.
Pursuant to the Arrangement, the former holders of common shares of Calvalley elected to receive cash payments of approximately US$48.1 million at US$0.807 per Calvalley Share. The 2,010,000 issued and outstanding shares of CVE held by Calvalley will be allocated pro-rata between former holders of common shares of Calvalley who elected approximately 14,769,436 common shares of Calvalley for shares in CVE, including 11,763,799 common shares of Calvalley that elected the Participation Option pursuant to the Support Agreements. The cash payment payable to shareholders who elected to receive such payment in respect of their Calvalley Shares is payable in two installments. The first payment of US$0.75 per share will be paid on May 15, 2015 and the balance of the payment, US$0.057 per share, will be held in escrow and distributed to shareholders electing the Liquidity Option when the conditions outlined in the Arrangement are fulfilled.