Argent Energy Trust, which operates on the U.S. Gulf Coast and in Wyoming’s Powder River Basin and the Eagle Ford, began creditor protection proceedings under Canada’s Companies’ Creditors Arrangement Act (CCAA) in the Court of Queen’s Bench of Alberta. Argent Energy (Canada) Holdings Inc. and Argent Energy (U.S.) Holdings Inc. joined the proceedings, the trust said Feb. 17.
Argent’s lending syndicate, which is its only secured creditor, supports the proceedings, the trust said. Argent and its subsidiaries began the proceedings after being unable to restructure their affairs adequately due to low commodity prices and limited access to capital, negative operating results, no suitable offer for assets and an accelerated credit facility payment, among other issues.
Argent and its subsidiaries will seek the appointment of FTI Consulting Canada Ltd. as the monitor overseeing the CCAA proceedings.
If they are given protection under the CCAA, Argent and subsidiaries will begin proceedings for creditor protection and recognition of CCAA proceedings in the U.S. on behalf of Argent Canada and Argent U.S., under Chapter 15 of Title 11 of the United States Bankruptcy Code.
Argent’s operations will continue in ordinary course, and management will remain responsible for day-to-day operations under the monitor’s general oversight. There are no changes planned for management or the board of directors, the company added.
Argent Energy Trust is based in Calgary, Alberta.