Shoreline Energy Corp.

Shoreline Energy Corp.

December 17, 2015 14:10 ET

Shoreline Energy Corp. Announces Failure to Implement CCAA Plan of Arrangement

CALGARY, ALBERTA--(Marketwired - Dec. 17, 2015) - Shoreline Energy Corp. ("Shoreline" or the "Company") announces that the conditions precedent to completion of the transactions contemplated by the previously announced plan of compromise and arrangement (the "Plan") proposed by the Company under the Companies Creditors' Arrangement Act (the "CCAA") have not been satisfied. As a result, the Company is unable to obtain a sanction order in order to implement the Plan. The current stay of execution pursuant to the CCAA expires on December 24, 2015 and the Company does not intend to seek a further extension. As a result, the board of directors of the Company has resolved to cause the Company to make an assignment in bankruptcy pursuant to the Bankruptcy and Insolvency Act (Canada) on December 23 (the "Assignment"). Pursuant to the Assignment, it is anticipated that Grant Thornton Limited will be appointed as the bankruptcy trustee. In addition, all of the directors and officers of the Company have tendered their resignations, with such resignations to be effective December 23 immediately prior to the Assignment.

A copy of applicable CCAA filings and applicable Monitor reports are available on the Monitor's website at http://www.grantthornton.ca/services/reorg/creditor_updates/shoreline.

About Shoreline Energy Corp.

Shoreline is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas and is currently operating under the Companies' Creditors Arrangement Act (Canada). Additional information regarding Shoreline is available under the Company's profile at www.sedar.com or at the website of the Company's Monitor, Grant Thornton, at www.grantthornton.ca/services/reorg/creditor_updates/shoreline.

Forward Looking and Cautionary Statements

This news release contains forward-looking statements relating to the CCAA and bankruptcy proceedings. These forward-looking statements may include opinions, assumption and estimates of management.

Forward-looking statements typically use words such as "will," "anticipate," "believe," "estimate," "expect," "intend," "may," "project," "should," "plan," and similar expressions suggesting future outcomes, and include statements that actions, events or conditions "may," "would," "could," or "will" be taken or occur in the future. The forward-looking statements are based on various assumptions including expectations regarding the CCAA and bankruptcy proceedings. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking statements are subject to a wide range of assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, the ability to access sufficient capital from external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.

Actual timelines associated with the CCAA and bankruptcy proceedings may vary from those anticipated in this news release and such variations may be material.

Although Shoreline believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not rely unduly on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Shoreline does not undertake any obligation to publicly update or revise any forward-looking statements.

Contact Information

  • Enquiries for the Monitor may be directed to:
    Grant Thornton Limited, Calgary, Alberta
    Guy Odhams
    Partner
    (403) 296-3143
    Guy.Odhams@ca.gt.com

    Shoreline Energy Corp.
    Mr. Dan Thompson
    Chief Executive Officer & Chief Financial Officer
    (403) 540-5010
    dthompson@shorelineenergy.ca