CALGARY, ALBERTA--(Marketwire - Feb 4, 2013) - Avatar Energy Ltd. ("Avatar" or the "Corporation") (TSX VENTURE:AVG) announces that it has received a Notice of Intention to Enforce Security from its bank lender and, in connection therewith, that it has consented to the appointment by the lender of Ernst & Young Inc. as the receiver and manager of the Corporation''s property. As a result of the current financial position of the Corporation and current economic circumstances, and following a thorough review of strategic alternatives available to the Corporation, the Corporation has determined that it is in the best interests of the Corporation and its stakeholders to approve the receivership. The Corporation''s assets may not be sufficient to satisfy the indebtedness owing under its credit facilities to its bank lender or, if sufficient, may not be sufficient to satisfy the Corporation''s other liabilities.
In connection with the receivership order, the directors of the Corporation have resigned from their positions with the Corporation. The TSX Venture Exchange has been notified of these developments and it is expected that the Corporation''s shares will be suspended or delisted from trading in due course.
- Board & Management Changes
Mr. Alan D. Jack, P. Eng
President & Chief Executive Officer