Impax Energy Services Income Trust

Impax Energy Services Income Trust

December 18, 2009 17:49 ET

Impax Energy Services Income Trust Obtains Court Order for Sale of Assets

CALGARY, ALBERTA--(Marketwire - Dec. 18, 2009) - 


Impax Energy Services Income Trust (TSX VENTURE:MPX.UN) ("Impax" or the "Trust") announces that further to its news releases issued on December 14, 2009, the Trust, Impax Energy Services Ltd., McClelland Oilfield Rentals Limited Partnership ("McClelland"), EGOC Enviro Group Limited Partnership ("EGOC") and Dwayne Hommy Trucking Limited Partnership ("Hommy") have obtained an Order from the Alberta Court of Queen's Bench approving the previously announced offer to sell all of the operating assets of McClelland, EGOC and Hommy to 1438961 Alberta Ltd. (the "Offer"). The parties expect that the closing of the Offer will be completed within the next few business days. As announced previously, all net proceeds from the Offer will be used to pay down secured debt.

Following the completion of the sale, only the Denray Rathole Drilling Limited Partnership ("Denray") operations will remain. The operations of Denray are expected to continue until sold as a going concern or be wound down. The Trust continues to work with its secured lenders to assess its options with Denray and expects to provide an update in due course. Revenues for the nine months ended September 30, 2009 for the Denray operations were approximately $3.6 million or 23% of the Trust's total revenues reported for the period then ended. The recorded values of the total assets of Denray employed at September 30, 2009 were approximately $3.4 million or approximately 11% of the Trust's reported total assets. Any net proceeds from a sale of Denray as a going concern or on a liquidation basis, which are expected in either case to be less than the Trust's remaining outstanding secured debt, will also be used to pay down the Trust's secured debt.

The Trust remains under creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act ("CCAA"). KPMG Inc., the court-appointed monitor under the CCAA process, will assist the Trust in completion of the sale as well as the sale as a going concern or wind down of Denray.

The Trust continues to maintain its transfer agent services. The six directors and three trustees of the Trust continue in place and Gary Jones continues as interim CEO and Karim Hirji as CFO. Further, Tom Trent remains as the Chief Operating Officer of Denray. In the event the transfer agent services are terminated for any reason or the minimum director requirements for the Trust are not met, the TSX Venture Exchange may suspend trading in the Trust's shares, in accordance with Exchange Requirements.

This news release may contain forward-looking statements relating to expected future events and financial and operating results of the Trust that involve known and unknown risks and uncertainties. Although the Trust has attempted to identify important factors that could cause results to differ materially from those contained in forward-looking information, actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed in the Trust's March 30, 2009 Annual Information Form filed with the Canadian securities regulatory authorities. Due to the potential impact of these factors, the Trust disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law

Neither TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Impax Energy Services Income Trust
    Raymond P. Cej
    (403) 233-8110
    Impax Energy Services Income Trust
    Gary Jones
    Interim Chief Executive Officer and Director
    (403) 233-8110
    Impax Energy Services Ltd.
    Karim Hirji
    Chief Financial Officer
    (403) 233-8110