Posted: Thursday Feb 2 10:45:39AM 2017
After reading through the first several paragraphs which sounded positive, the last paragraph certainly projects that once the term sheet was rejected by the senior lender and the monitor that the company will be assigned a receiver within 24 hours. This certainly isn't the news we wanted but is not surprising given the number of delays in the CCAA process. We have tried to keep our investors informed through this process and while we had regular contact early in this process, we have made many efforts over the past 2 weeks to reach management but these efforts have not been returned.
QUATTRO SIGNS BINDING FINANCING TERM SHEET AND RECEIVES RECEIVERSHIP APPLICATION NOTICE
Quattro Exploration and Production Ltd. has signed a binding term sheet with Advisco Capital Corp., a New York-based private finance company, for the provision by Advisco of a secured revolving credit facility and secured term loan in the aggregate amount of $15-million. The proposed loan has been negotiated with Advisco for the purpose of satisfying all amounts outstanding to the company's senior secured lender, the Business Development Bank of Canada.
The loan consists of: (a) secured revolving credit facility in an amount not to exceed 80 per cent of the company's eligible accounts receivable and 60 per cent of the orderly liquidation value of eligible inventory on hand, and (b) a secured equipment term loan in an amount not to exceed 65 per cent of the orderly liquidation value machinery, equipment and other tangible property. The proposed loan bears interest at the rate of 1 per cent per month, plus a 2-per-cent fee on the aggregate amount of proposed loan, payable at closing. The proposed loan is for a one-year term, with an option to renew for an additional one-year term, provided the company is not in default, at a cost of 1 per cent of the gross amount of the proposed loan then outstanding.
Management of Quattro believes that the proposed loan, along with other negotiated non-core asset transactions, will allow the company to submit an equitable plan to its creditors and exit from its current Companies' Creditors Arrangement Act (CCAA) process.
The company also provides the following report on its CCAA process, the activities to date in regards to Quattro's Court of Queen's Bench of Alberta approved proposed sale and investor solicitation process that was initially launched on Oct. 3, 2016.
On Jan. 5, 2017, the stay of proceedings under the CCAA for Quattro was extended to Feb. 17, 2017. In connection with the stay, Quattro entered into a term sheet with its senior lender, whereby the lender agreed to provide an additional $650,000 of debtor-in-possession financing to Quattro, bringing the total amount of debtor-in-possession financing under the CCAA to an aggregate $1.9-million. The additional debtor-in-possession financing was approved by the court pursuant to the CCAA process. The term of the additional loan was due to expire on March 20, 2017. A total of $440,000 had been advanced by the lender under the interim financing agreement to date.
In the assessment of the lender and the monitor, the proposed loan and the additional efforts of the company to satisfy the BDC debt did not meet the conditions of the term sheet, and, in accordance with the terms of the term sheet, BDC was entitled to: (a) reject the provision of the remaining interim financing, and (b) make an application to the court upon 24 hours notice to Quattro and the monitor for the appointment of a receiver. On Jan. 31, 2017, Quattro was served such notice of an application by BDC to occur on Feb. 2, 2017, at 9:30 a.m.
Posted: Monday Jan 9 1:22:49PM 2017
I hear that there is a press release in the works but I have no idea where we sit now after 4 months of delays in completing the divestiture. I'm holding my breath.
Posted: Tuesday Jan 3 1:12:45PM 2017
Well, this is likely a controversial post since they are a QIS client, but if anyone still has shares of this I would take a very close final look. You don't need much of a spidey sense to see these guys are just hanging on by a thread. A major milestone for them appears to be tomorrow: http://relieffromdebt.ca/quattro-exploration-production-ltd/ I lost of ton of money on this one and should have listened to my gut when they came out with the goofy preferred shares. Good luck, if I still had shares, I would be a seller at whatever price I could get.