Lone Pine Resources Inc. provided an update on Nov. 12 regarding its restructuring plan and related court proceedings.

Execution of Commitment Letter for New Borrowing Base Facility

On Nov. 11, Lone Pine entered into a commitment letter with a syndicate of lenders to provide for a new senior secured credit facility to be effective upon completion of the company's proposed restructuring under the companies' creditors arrangement act that was previously announced on Sept. 25. Funding of the new ABL, which remains subject to the negotiation and execution of definitive documentation, is conditional on, among other things, completion of the proposed restructuring as previously announced by the company. It is estimated that the available borrowing base of the new ABL will be $130 million at the time of closing. As part of the proposed restructuring, Lone Pine expects that proceeds from a new US $100 million preferred equity investment to be made by eligible affected creditors, together with a portion of the borrowings available under the new ABL, will be used to repay all secured indebtedness under the company's existing secured credit facility. Lone Pine intends to seek approval of the commitment letter in respect of the new ABL from the Alberta Court of Queen's Bench in its proceedings under the CCAA.

Automatic Extension of Stay Period and Extension of Claims Bar Date

In connection with Lone Pine's execution of a commitment letter for the new ABL, the stay of proceedings against Lone Pine, certain of its affiliates, and its directors and officers under the CCAA that was initially put in place by the Canadian Court on Sept. 25 has been automatically extended to and including Nov. 29.

Lone Pine intends to propose a plan of compromise and arrangement in accordance with the restructuring terms previously announced, which will provide for, among other things, the cancellation of all outstanding shares of the company's common stock, the conversion of US $195 million of 10.375% senior notes plus accrued but unpaid interest into new common shares and a new US $100 million preferred share offering to eligible affected creditors. Lone Pine anticipates filing a proposed plan on or before Nov. 29, unless otherwise extended.

In connection with the CCAA proceedings, on Oct. 9, the Canadian Court approved a claims procedure order and established an initial claims bar date of Nov. 13. On Nov. 8, the Canadian Court granted an order extending the claims bar date from Nov. 13 to Nov. 27.

Lone Pine Resources Inc. is an independent energy company engaged in the exploration and development of natural gas and light oil in Canada. The company is based in Calgary.