Trafina Energy Ltd. has been unable to develop a satisfactory plan to repay the indebtedness owing under its facility to its lender and, as a result, it is no longer able to maintain forbearance arrangements with its lender.
Accordingly, at the request of Trafina's lender a receiver was appointed today by the court to liquidate Trafina's assets. The Company's assets may not be sufficient to satisfy the indebtedness owing under its facility to its lender or, if sufficient, may not be sufficient to satisfy the Company's other debts and accounts payable.
In connection with the appointment today of a receiver by the court, each of Trafina's directors resigned. The TSX Venture Exchange has been notified of these developments and it is expected that Trafina's shares and warrants will be suspended or delisted from trading in due course.