/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE U.S./
CALGARY,
AB, Nov. 30, 2023 /CNW/ - Wolverine Energy and
Infrastructure Inc. (the "Company") (TSXV: WEII) reports
that, with the authorization and approval of its Board of
Directors, and on behalf of itself and its subsidiaries
(collectively, "Wolverine"), that the Company has made a
filing for and received an order for creditor protection (the
"Initial Order") from the Alberta Court of King's Bench (the
"Court") pursuant to the Companies' Creditors Arrangement
Act (the "CCAA"). The Initial Order included, among
other things: (i) a stay of proceedings in favour of Wolverine;
(ii) relief from reporting obligations under securities legislation
and stock exchange rules; and (iii) the appointment of Ernst and
Young Inc. to act as monitor of Wolverine (in such capacity, the
"Monitor").
The decision to seek creditor protection was taken after careful
consideration of available alternatives, including the Company's
cash position, forecasted revenues and expenses (including in
relation to its subsidiaries), and scheduled debt payments. The
Company expects that it will be unable to make scheduled debt
payments due to liquidity constraints related to recent operational
challenges (including work disruptions due to wildfire activity),
inflationary pressures that are significantly impacting costs, and
unforeseen but necessary capital expenditures. Following
consultation with its legal and financial advisors, the Board of
Directors has determined that it was in the best interests of the
Company and its stakeholders to file for creditor protection under
the CCAA.
The Court has appointed the Monitor in the CCAA proceedings to
oversee the operations of the Company and report to the Court
during the restructuring. Wolverine intends to operate in the
ordinary course throughout the proceedings and to seek approval of
a sale and investment solicitation process, which, if approved,
would facilitate transactions that see the Company emerge from CCAA
protection as a going concern. The Company has significant asset
value in its equipment with which it will look to restructure its
current debt position, while maximizing stakeholders returns,
including its significant equity interest in third party public
companies. Wolverine will work with its advisors and the Monitor
towards both operational continuity and value realization for all
internal and external stakeholders throughout the CCAA process.
Information and materials filed in connection with the CCAA
proceedings can be found on the Monitor's website
www.ey.com/ca/Wolverine. Trading in the common shares of the
Company on the TSX Venture Exchange has been halted and a cease
trade order is anticipated in due course.
About Wolverine Energy and Infrastructure
Wolverine is a diversified energy and infrastructure services
provider headquartered in Calgary,
Alberta with over 70 years of operating history. Wolverine
commenced active business operations through its predecessor
entity, Rig Service Equipment Ltd., in 1952 as an oilfield service
provider. Over the course of its history, the Wolverine group of
companies has pursued a strategy combining organic growth and
strategic acquisitions. Today, Wolverine is a full-service,
diversified energy and infrastructure service company. Wolverine's
operations are based in Western
Canada and the United
States.
Cautionary Statements
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
This news release contains forward-looking statements and/or
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable securities laws.
When used in this release, the words "expects", "anticipates",
"believes", "intends", "estimates", "potential", "possible", and
similar expressions, or statements that events, conditions, or
results "will", "may", "could", or "should" occur or be achieved
and similar expressions, as they relate to Wolverine or its
management, are intended to identify such forward-looking
statements. Such forward-looking statements include but are not
limited to (i) the Company's continued operation and control of its
business, and (ii) the Company's consideration of strategic and
financial alternatives to maximize stakeholder value.
These forward-looking statements and information reflect the
Company's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory risks
and uncertainties, including risks related to the restructuring
process and its impact on the Company's operations and financial
conditions, uncertainty regarding the Company's ability to identify
and pursue strategic alternatives that will maximize stakeholder
value and the risks described in respect of the Company in its most
management's discussion and analysis filed with the Canadian
Securities Administrators and available
at www.sedarplus.ca.
These forward-looking statements are subject to numerous
risks and uncertainties, including but not limited to: the impact
of general economic conditions in Canada and the
United States; industry conditions including changes in laws
and regulations including adoption of new environmental laws and
regulations, and changes in how they are interpreted and enforced,
in Canada and the United States; competition; lack of
availability of qualified personnel; obtaining required approvals
of regulatory authorities, in Canada and the
United States; volatility in market prices for oil and gas;
fluctuations in foreign exchange or interest rates; environmental
risks; changes in income tax laws or changes in tax laws and
incentive programs relating to the oil industry; and ability to
access sufficient capital from internal and external
sources.
There is no assurance that these forward-looking statements
will prove accurate or that actual results will not vary materially
from these forward-looking statements. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described, or
intended. Accordingly, readers are cautioned not to place undue
reliance on forward looking statements. Forward-looking statements
and information are designed to help readers understand
management's current views of our near- and longer-term prospects
and may not be appropriate for other purposes. The Company does not
intend, nor does it assume any obligation to update or revise
forward-looking statements or information, whether as a result of
new information, changes in assumptions, future events or
otherwise, except to the extent required by applicable
law.
SOURCE Wolverine Energy and Infrastructure Inc.
