Scandoil  

Legend assigns Legend Energy Canada into Canadian bankruptcy courts


Published Sep 29, 2014
Legend Oil and Gas Ltd.

Legend Oil and Gas Ltd. says that on September 19, 2014, Legend Oil and Gas, Ltd. has placed its wholly owned subsidiary, Legend Energy Canada, Ltd. (a Canadian company, "LEC"), into an Assignment for the General Benefit of Creditors in the Court of Queen's Bench in Bankruptcy and Insolvency, Province of Alberta, Canada, for relief under the Bankruptcy and Insolvency Act of Canada. It has named KPMG, Inc. of Canada as the Trustee.

"We have proceeded in a strategic manner to place LEC into bankruptcy. LEC's assets historically did not produce the operating or financial results that Legend's prior management team had anticipated, which significantly encumbered both LEC and Legend, as LEC's parent company. Further, the majority of the assets were taken into receivership by the National Bank of Canada in April of 2014, leaving the balance sheet at LEC with essentially nothing but liabilities." stated Chief Financial Officer, Warren Binderman. "The process we followed to place LEC into bankruptcy commenced with Legend negotiating and obtaining a full release earlier this quarter, of all Legend's obligations under certain bank debt LEC incurred with the National Bank of Canada ("NBC"). This full release gives Legend the flexibility and ability to move forward, unencumbered by these obligations which had been hanging over our heads, and limiting our ability to obtain further funding to enhance operations."

Tags: Legend O&G




Advertisment:

Add a Comment to this Article

Please be civil. Job and promotion will not be added into the comment page.

(Use Markdown for formatting.)

This question helps prevent spam:

+ Larger Font | + Smaller Font
Top Stories

 

 

 

 


 


RSS

RSS
Newsletter
Newsletter
Mobile News
Mobile news

Computer
Our news on
your website


Facebook
Facebook
Twitter
Twitter

Contact
Contact
Tips
Do you have any
tips to us
Stats

 

sitemap xml