Mr. Jason Skehar reports
BONAVISTA ENERGY CORPORATION PROVIDES FINANCIAL AND CAPITAL BUDGET UPDATE
Bonavista Energy Corp. has worked extensively over the past 12 months in an effort to realign its near-term debt maturities and maintain adequate liquidity to continue ordinary-course operations in extraordinary market conditions. As part of these efforts, Bonavista issued a draw request for $175-million available under its existing $500-million bank credit facility with a syndicate of eight Canadian banks: Canadian Imperial Bank of Commerce, Toronto-Dominion Bank, Royal Bank of Canada, Bank of Montreal, Bank of Nova Scotia, National Bank of Canada, Alberta Treasury Branches and Caisse Centrale Desjardins.
Notwithstanding Bonavista's belief that the draw-down conditions under the facility were met, CIBC (the administrative agent) advised Bonavista that the draw request would not be honoured by the banking syndicate.
Bonavista is currently in discussions with its creditors to provide a facility to meet its operating liquidity requirements over the next several months, while concurrently continuing to create a path forward to reorganize its near-term debt maturities. Bonavista's capital budget, which was announced on Feb. 13, 2020, has contemplated only modest maintenance capital spending over the next few months. All measures mentioned above are intended to provide the company with liquidity, sustainability and the stability required to navigate the recent and unprecedented global market challenges.
We seek Safe Harbor.
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