Quicksilver Resources Inc (OTCMKTS:KWKAQ) informed about the approval by the U.S. Bankruptcy Court of all of its “first day” motions. The approval is a significant step forward in company’s measures to solve financial challenges. It will help company to position as a strong peer in the gas and oil industry. Glenn Darden, the Chief Executive Officer stated the new announcement will give company’s working interest owners, employees, royalty and suppliers confidence that Quicksilver will continue its operations without interruption.
Quicksilver also confirmed that it received approval to pay employee health benefits, wages, and certain other obligations. Moreover, it is authorized to pay working interest obligations, royalty obligations, and other obligations related to gas and oil leases. The company and its subsidiaries filed voluntary bankruptcy petitions as per title 11 of the U.S. Code on March 17, 2015.
Quicksilver’s Canadian subsidiaries firms were excluded in the Chapter 11. The Canadian firm has reached a deal with its first lien secured lenders. The agreement is related with forbearance for a period up to June 16 of any default under its first lien credit deal resulting from the chapter 11 filing. It created a Restructuring Information Hotline for investors, royalty owners, landowners, suppliers, employees and other parties. The legal advisors are Bennett Jones in Canada and Akin Gump Strauss Hauer & Feld LLP.
Quicksilver Resources Inc (OTCMKTS:KWKAQ) is an independent and publicly traded gas and oil engaged in the development, exploration, and acquisition of gas and oil, particularly from unconventional reservoirs including coal beds and shales in North America. The Canadian subsidiary firm is headquartered in Calgary. The common stock of the company is traded on the OTC Pink platform under the symbol “KWKAQ. The OTC profile page of the company clearly mentions that the company is in process of bankruptcy.