Oilsands Quest to Conduct Solicitation Process
January 12 2012 - 8:00AM
PR Newswire (Canada)
CUSIP# 678046 10 3 NYSE Amex: BQI CALGARY, Jan. 12, 2012 /CNW/ -
Oilsands Quest Inc. ("Oilsands Quest," "OQI" or "the Company") has
requested and obtained approval from the Alberta Court of Queen's
Bench (the "Court") to conduct a process to solicit offers to
acquire, restructure or recapitalize the Company (the "Solicitation
Process"). The Company is also pursuing Debtor-in-Possession
financing to provide liquidity as it conducts the Solicitation
Process. The Solicitation Process will be overseen by a Special
Committee of the Oilsands Quest Board of Directors, chaired by Paul
Ching and including Ronald Blakely and Brian MacNeill, all of whom
are independent directors. The Special Committee will consider all
offers, and will ultimately recommend a course of action to the
Company's full Board. With the Court's approval, the Company has
retained TD Securities Inc. ("TD Securities") as its financial
advisor to assist it with this process. TD Securities is familiar
with Oilsands Quest's assets and business as a result of previous
engagements and has assisted Oilsands Quest in prior discussions
with potentially interested parties. TD Securities will begin
soliciting indications of interest from prospective strategic or
financial parties, with preliminary bids due in early March 2012.
The Company expects to shortlist potential bidders and seek binding
offers by late March 2012, with a target to conclude an agreement
by mid-April 2012. The Board of Directors and management continue
to be responsible for determining whether a given plan for
restructuring the Company's affairs is feasible, with input from
the Court-appointed Monitor under the Companies' Creditors
Arrangement Act ("CCAA"). Stakeholders whose rights would be
affected by the plan will have an opportunity to vote on the plan.
Before a plan is implemented it must be approved by the requisite
number and value of affected stakeholders contemplated by law and
approved by the Court. There can be no assurance that the
Solicitation Process will result in a financing or a sale of the
Company or in any other transaction and the company does not intend
to comment further regarding the evaluation of alternatives unless
the Board agrees to a definitive transaction or the Solicitation
Process is concluded. About Oilsands Quest Oilsands Quest Inc.
(www.oilsandsquest.com) is exploring and developing oil sands
permits and licences, located in Saskatchewan and Alberta, and
developing Saskatchewan's first commercial oil sands discovery.
Forward-looking statements This news release includes certain
statements that may be deemed to be "forward-looking statements."
All statements, other than statements of historical facts, included
in this news release that address activities, events or
developments that management expects, believes or anticipates will
or may occur in the future are forward-looking statements.
Forward-looking statements are statements other than relating to
historical fact and are frequently characterized by words such as
"plan", "expect", "project", "intend", "believe", "anticipate",
"estimate", "potential", "prospective" and other similar words or
statements that certain events or conditions "may" "will" or
"could" occur. Forward-looking statements are based on the opinions
and estimates of management at the date the statements are made,
and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking
statements, which include but are not limited to the ability to
raise additional capital, risks associated with the Company's
ability to implement its business plan, its ability to successfully
submit a timely plan to its stakeholders and the court under the
CCAA and to resolve its operational, legal and financial
difficulties, the possible delisting of its securities from NYSE
Amex, risks inherent in the oil sands industry, regulatory and
economic risks, land tenure risks and those factors listed under
the caption "Risk Factors" in the Company's Form 10-Q filed with
the Securities and Exchange Commission on December 9, 2011. The
Company undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions
should change, except as required by law. The reader is cautioned
not to place undue reliance on forward-looking statements. Oilsands
Quest Inc. CONTACT: Investor RelationsEmail:
ir@oilsandsquest.comInvestor Line: 1-877-718-8941
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