The Globe and Mail reports in its Thursday edition that even in a deluge of bad news gushing from the oil patch over the past two weeks, Bonavista Energy's latest statement to investors stands out. The Globe's Jeffrey Jones writes that Bonavista took the unusual step on Wednesday of announcing that its banking syndicate had rejected a request to draw $175-million from its $500-million line of credit. The company also made a point of naming the eight lenders, which are led by CIBC. "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," the company said. CIBC declined to comment. Bonavista -- like a large proportion of its industry -- is in an existential struggle as it deals with the impacts of COVID-19 and a global collapse in energy markets. Over the past year, Bonavista, led by chief executive officer Jason Skehar, has sought to deal with approaching maturities on senior debt. Bonavista tried to draw on its line of credit to retire some of the debt. The banks apparently said no to that. Bonavista closed Wednesday at 15 cents, down six cents in Toronto.
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