Razor Energy Corp., including its subsidiaries, filed a notice of intention to make a proposal under Canada's Bankruptcy and Insolvency Act (BIA), appointing FTI Consulting Canada Inc. as the proposal trustee.
The board's decision stemmed from an ongoing dispute with the Judy Creek Gas Plant operator, causing a significant production shutdown of approximately 1,100 boepd, and other business challenges. Under the Notice of Intention, Razor Energy sought to explore strategic alternatives, engaging Peters & Co. Limited to solicit bids for potential transactions, including property sales, refinancing, or restructuring financial obligations.
The Notice of Intention initiated an automatic stay of proceedings, protecting the corporation from creditor claims and enforcement actions. During this period, creditors could not amend agreements or demand accelerated payments due to insolvency. The initial stay period was 30 days, extendable by court order.
Texcal Energy Canada Inc., following a contested application, purchased the assets of Razor in the CCAA.
McCarthy Tétrault LLP provided legal counsel to Razor Energy, Blake, Cassels & Graydon LLP represented FTI Consulting Canada Inc., and Borden Ladner Gervais LLP acted as counsel to Texcal Energy with a team led by Kevin Barr and included Miles Pittman, Blaine Bowman, and Jessica Schuldhaus.
Bennett Jones LLP acted for Conifer Energy Inc., Fasken LLP for Arena Investors LP, and Osler, Hoskin & Harcourt LLP for CNRL.