As previously disclosed, on September 25, 2013, Lone Pine Resources Inc. (the "Company") and its subsidiaries, including Lone Pine Resources Canada Ltd. ("LPR Canada"), commenced proceedings in the Court of Queen's Bench of Alberta under the Companies' Creditors Arrangement Act ("CCAA") and ancillary proceedings under Chapter 15 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (collectively, the "Creditor Protection Proceedings").
In connection with the Creditor Protection Proceedings, on October 24, 2013, the Company and LPR Canada entered into a Credit Agreement (the "DIP Credit Agreement") with the lenders party thereto (the "Lenders") and JPMorgan Chase Bank, N.A., Toronto Branch, as administrative agent (the "Agent"). Certain of the Lenders are lenders, and the Agent serves as administrative agent, under LPR Canada's existing secured credit facility. Pursuant to the terms of the DIP Credit Agreement, (i) the Lenders agreed to lend LPR Canada up to Cdn$10,000,000, which loans will bear interest at the Canadian Prime Rate (as defined in the DIP Credit Agreement), plus 5.00%, (ii) the Company and each Restricted Subsidiary (as defined in the DIP Credit Agreement) agreed to guarantee LPR Canada's obligations thereunder, and (iii) the Obligations (as defined in the DIP Credit Agreement) are and shall be at all times secured by the liens in all collateral created by the DIP Charge (as defined in the DIP Credit Agreement) and all such liens shall be first priority liens subject only to the Administration Charge (as defined in the DIP Credit Agreement). LPR Canada is obligated to pay the Agent an upfront fee of 2% and the lenders a commitment fee of 0.75% of unutilized commitments. Proceeds of loans under the DIP Credit Agreement may be used to provide for working capital, capital expenditures and other expenditures during the course of the Creditor Protection Proceedings, in accordance with
In "layman's" terms JPM Canada will give LPR 10 MIL. for "prime +5%" and 2.75 point's on the loan. The loan will be backed by all entities of LPR and 1st. in line at receviership. No gift for sure! Especially how they are lpr's advisor and seemto hold 180 mil secures against LPR aka bond holder.
And my question is WHY WOULD JPM LOAN $10 MILLION TO A BK COMPANY, UNLESS THEY HAD ENOUGH ASSETS FOR ASSURANCE !!
And My second Question is WHERE DID THE $11 MILLION CASH GO, ACCORDING TO THEIR
LAST CC !!??
Lastly, Unless the Judges are stupid, Dumb and #$%$, I Am sure they can see this scam for what it is. I am sure if the decision is made by the Judges to CANCEL THE COMMON SHARES, Their
Rulling would be Appealed, And It would be over turned, as their BK CLAIM IS FULL OF HOLES.
This is more like a back Room Dealing done on K Street. WE THE SHARE HOLDERS WILL PREVAIL.