HONG KONG, CHINA and CALGARY, ALBERTA–(Marketwired – Sept. 1, 2016) – The Board of Directors (the “Board“) of Sunshine Oilsands Ltd. (the “Corporation” or “Sunshine“) (HKEX:2012) is pleased to announce the following:
EXTENSION OF FORBEARANCE WITH NOTEHOLDERS
Reference is made to the announcements of the Corporation dated August 5, 2014, August 8, 2014 and February 5, 2016 (all Hong Kong time) in relation to, among other things, the offering of US$200 million principal amount of senior secured notes (the “Notes“). Reference is also made to the announcements of the Corporation dated August 1, 2016, August 12, 2016, August 17, 2016 and August 29, 2016 (all Hong Kong time) in relation to, among other things, the forbearance agreements the Corporation has entered into with the holders of the Notes (the “Noteholders“).
The Corporation and Noteholders representing at least 94% of the outstanding Notes have agreed to extend the forbearance period pursuant to a further forbearance arrangement. As a result of this extension, each of the Noteholders that are party to the forbearance agreement have agreed not to enforce its rights in respect of the Notes prior to 6:00 p.m. (New York time) on September 9, 2016, subject to certain restrictions, in order to provide the Corporation and the Noteholders with additional time to finalize definitive documentation effecting, among other things, an extension of the maturity date of the indebtedness owed to the Noteholders to August 1, 2017. The Corporation is not aware that the Noteholders that are not a party to the forbearance agreement intend to enforce their rights in respect of the Notes.
The expected principal terms of the definitive documentation remain as described in the Corporation’s August 1, 2016 (Hong Kong time) announcement. The Board believes the anticipated terms of the definitive documents and the extension of the forbearance arrangement are in the best interests of the Corporation and its shareholders as a whole as the agreement will provide the Corporation with additional time to repay or refinance the indebtedness owed to the Noteholders under the Notes.
The Corporation will provide further updates to the negotiation and completion of the definitive documentation as necessary.
ABOUT SUNSHINE OILSANDS LTD.
The Corporation is a Calgary based public corporation listed on the Hong Kong Stock Exchange since March 1, 2012. The Corporation is focused on the development of its significant holdings of oil sands leases in the Athabasca oil sands region. The Corporation owns interests in approximately one million acres of oil sands and petroleum and natural gas leases in the Athabasca region. The Corporation is currently focused on executing milestone undertakings in the West Ells project area. West Ells has an initial production target rate of 5,000 barrels per day.