IN BRIEF: Canadian Overseas Petroleum applies for debtor protection
Canadian Overseas Petroleum Ltd - oil and gas exploration company with operations in US state of Wyoming - Shares suspended from trading in London and Toronto on Monday, after COPL applies for an initial order under the companies' creditors arrangement act in Canada. COPL had warned in February of its "precarious financial situation", and the application for debt protection follows expiration of a forbearance agreement with its senior lenders. The CCAA order provides for a stay in legal proceedings, approval of debtor-in-possession financing, and the appointment of KSV Restructuring Inc to act as monitor of the company. COPL says it will continue to operate and pay critical suppliers, but there is "little prospect for a return to shareholders or bond holders". COPL on Tuesday confirms the initial CAA order has been issued by the court in the province of Alberta. At the same time, senior lenders to subsidiary COPL America Inc agree to support a sale and investment solicitation process. Read More