On February 17, 2016, Argent Energy Trust and certain subsidiaries filed an application for creditor protection under the Companies’ Creditors Arrangement Act (the “CCAA”) on February 17, 2016. The Court has appointed FTI Consulting Canada Inc. (“FTI Consulting” or the “Monitor”) to act as court appointed monitor of Argent. Argent also received an Initial Interim Order on February 22, 2016, to have the CCAA recognized under Chapter 15 in the United States Bankruptcy Court for the Southern District of Texas, Corpus Christi Division.
This action was taken as the logical next step in a strategic process to maximize the value of our assets for all key stakeholders. CCAA and the Chapter 15 protection kept creditors, suppliers and others from enforcing any rights against Argent and afforded the Company the opportunity to restructure or sell our business in an orderly manner.
On May 17, 2016, Argent announced the sale of all of its oil and gas assets in the US to BXP Partners IV, LP. The transaction was approved by the Court of Queen's Bench of Alberta and the United States Bankruptcy Court. The proceeds received from the transaction are insufficient to provide any funds for distribution to unitholders or debentureholders of the Trust. The Trust is currently winding down operations.