Royal Helium Ltd. ("Royal") announced that Royal and its subsidiaries, Royal Helium Exploration Limited and Imperial Helium Corp. (together with Royal, the "Company"), filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act (the "BIA").
The Company has been actively pursuing an out-of-court restructuring solution, which included, among other things, initiatives to raise additional capital to meet working capital needs, creditor obligations and fund engineering requirements to appropriately re-commission the Steveville Helium Facility. Following such review and after careful consideration of all available alternatives, and consultation with counsel, the board of directors of the Company determined that it is in the best interests of the Company and its stakeholders to file for protection under the BIA.
The filing under the BIA includes, among other things: (i) a stay of proceedings in favour of the Company, and (ii) the appointment of Doane Grant Thornton LLP as the proposal trustee of the Company (in such capacity, the "Trustee").
The Company sought creditor protection under the BIA in order to obtain a stay of proceedings that will allow the Company to work with the Trustee to facilitate the development of an orderly process designed to streamline its interim administrative and operational needs and conduct a Court-supervised sales process to obtain a going concern solution for its operations and maximize the value of the Company's assets for the benefit of its stakeholders.
The board of directors of the Company will remain in place and management will remain responsible for the day-to-day operations of the Company, under the general oversight of the Proposal Trustee.
It is anticipated that TSX Venture Exchange (the "TSXV") will place the Company under delisting review and there can be no assurance as to the outcome of such review or the continued qualification for listing on the TSXV.
Other Recent Events:
As the Company has been working toward a restructuring solution, the Company's VP of Geology (Shayne Neigum), who had also been acting in the capacity of its COO resigned from the Company to pursue other opportunities. The Company expresses its appreciation for Shayne's contributions to the business and wishes him the best in his future activities.