Canadian Overseas Petroleum Limited (LSE:COPL, CSE:XOP, OTC:VELXF) confirmed it has now been issued by the Alberta Court of King's Bench an initial order under the Companies' Creditors Arrangement Act (CCAA).
Additionally, it noted that it has executed a restructuring support agreement with the senior lenders to COPL's subsidiary, COPL America, pursuant to which, among other things, the lenders have agreed to support a sale and investment solicitation process (SISP) wherein they will serve as a stalking horse bidder to acquire substantially all of the COPL Group's business by way of a credit bid.
It also noted that it intends to seek recognition of the CCAA proceedings in the United States Bankruptcy Court for the district of Delaware.