ENP Newswire -
Release date- 07082014 -
In its detailed report on the Aspenleaf proposal to recapitalize and acquire Arcan, ISS said: 'in light of the high leverage level of the company which could potentially lead to going concern uncertainty, the transaction may be viewed as a better alternative for shareholders given the lack of other superior proposals at this stage.
In addition, although the transaction involves both shareholders and debentureholders, there appears no significant evidence that shareholders are treated more unfavourably than debentureholders in terms of the transaction terms. Hence, on a balanced view, a vote FOR this resolution is warranted.'
In its report, Glass Lewis said: 'All things considered, we are of the view that such a framework provides significantly greater near- and long-term certainty for investors, effectively fixes the potential dilutive impact of Arcan's 2016 and 2018 debentures and resolves the funding requirements associated with the Swan Hill development.
Based on these considerations, Arcan's fairly dim stand-alone prospects, the board's thorough pre-execution pursuit of alternatives and the potential value to be realized - even from a reduced ownership position - in the successful development of Swan Hill, we believe shareholders should support this proposal. Accordingly, we recommend shareholders vote FOR this proposal.'
Both ISS and Glass Lewis are widely recognized as leading independent proxy voting and corporate governance advisory firms. Their analyses and recommendations are relied upon by many major institutional investment firms, mutual funds and fiduciaries throughout
Arcan today posted a new investor presentation detailing why it believes it is in the best interest of all securityholders to vote FOR the Arrangement. Under this proposed transaction, among other things, Arcan will be recapitalized and acquired by Aspenleaf, all outstanding debentures will be paid out and
Aspenleaf brings the right people to unlock significant
Successful oil and natural gas companies are built on a combination of attractive assets, sufficient capital and the right people. With the debt restructured to appropriate levels, the Aspenleaf team will have the opportunity to apply and continue to enhance the advanced horizontal drilling, completion and water flood techniques that have been developed and deployed in an effort to maximize recovery levels from the
'The ability to sustain continuous investment is critical to success and cannot be achieved under the current debt structure. Without this capital to fix the debt and fund our investment program, I am concerned that we will face the twin risks of mounting staff attrition and reductions in our banking facilities. This could result in restrictions on Arcan's ability to execute a continuous drilling program leading to production declines as natural decline takes its toll.
The status quo is fragile and carries significant downside risk that jeopardizes operational and cash flow performance. Voting FOR this creative transaction will put the people and money in place to help unlock the full value of
Securityholders will vote on Arcan's future on
If the Arrangement is approved by securityholders, soliciting dealers will be paid, subject to certain exceptions and thresholds, a solicitation fee of
Arcan Corporate Events -
Arcan has closed the previously announced sale of its 14.5-kilometre Ethel oil sales pipeline. As well, Arcan has entered into an agreement with
Securityholders with questions or who require further information about the Arrangement Arcan strongly encourages shareholders and debentureholders to read the comprehensive Information Circular, consult with their financial advisor and vote in person, or by proxy, in time to be counted at the securityholders meeting on
Any questions and requests for assistance may be directed to Arcan's proxy solicitation agent
North American Toll Free Phone: (800) 239-6513
Banks, Brokers and collect calls: 201-806-2222
Toll Free Facsimile: 1-888-509-5907
Chief Executive Officer
President & Chief Executive Officer
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