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The battle between Calfrac and Wilks Brothers grew to become public on July 14, when Calfrac introduced a recapitalization transaction a month after it had missed an curiosity fee on a tranche of its money owed.
On Aug. 4, the corporate introduced that Wilks Brothers, which owns greater than 19 per cent of Calfrac’s shares and a major chunk of its debt, publicly provided the corporate what the Texas firm known as a superior recapitalization deal.
Wilks Brothers mentioned it was a greater deal for everybody besides a particular group of debt holders that features Calgary-based Matco Funding Ltd., which is led by Mathison.
Roughly a month later, on Sept. 11, Wilks Brothers affiliate THRC Holdings LP introduced a hostile takeover provide to purchase all current shares of Calfrac. Since then, Calfrac has additionally proposed an up to date recapitalization transaction.
On Friday, shareholders and bondholders, after being bombarded with letters and provides previously 4 months, sided with administration quite than the takeover provide for a corporation that has struggled to generate sufficient money to pay its money owed.
Nationwide Financial institution Monetary analysts Travis Wooden, Dan Payne and John Hunt mentioned in a analysis word this week that considerations about liquidity and the power to entry cash will result in an uptick in offers within the oilpatch.
“Just like M&A exercise south of the border, we imagine the tempo of consolidation ought to speed up throughout the (Western Canadian Sedimentary Basin),” the analysts mentioned.