CALGARY, ALBERTA–(Marketwired – Jan. 14, 2016) – Anderson Energy Inc. (“Anderson” or the “Company”) (TSX:AXL) announces the cancellation of the special meeting of the holders of 7.50% Series A convertible unsecured subordinated debentures due January 31, 2016 (the “Series A Debentures”) and holders of 7.25% Series B convertible unsecured subordinated debentures due June 30, 2017 (the “Series B Debentures”, and together with the Series A Debentures, the “Debentures”). The special meeting had been called to consider an extraordinary resolution pursuant to which all of the Debentures would have been settled and all claims of the Debentureholders thereunder extinguished in exchange for common shares (“Common Shares”) in the capital of Anderson and the payment of certain interest amounts in cash (the “Exchange Transaction”).
The special meeting has been cancelled as there have been insufficient positive votes cast approving the Exchange Transaction by holders of Series B Debentures. The indenture governing the Debentures requires that the resolution approving the Exchange Transaction must be passed by 66 2/3% of the votes for each series of Debentures and for all the Debentures in total. Holders of the Series A Debentures voted 73.25% in favor of the Exchange Transaction with 73.27% of the Series A Debentures being voted. Holders of the Series B Debentures voted 56.16% in favor of the Exchange Transaction, with 69.22% of the Series B Debentures being voted. The Company has one significant debenture holder holding more than 11% of the Debentures voting against the Exchange Transaction.
As previously disclosed in the information circular of the Company dated December 7, 2015, with the Exchange Transaction not being approved, the Company intends, in the case of both series of Debentures, to exercise its right under the terms of the indenture governing the Debentures to repay both the principal and the accrued and unpaid interest at maturity or redemption in Common Shares. There will be no separate cash interest payment for the final interest payment. The interest will be paid, along with principal, by issuing Common Shares. For the Series A Debentures, this will be effective at maturity of the Series A Debentures on January 31, 2016. For the Series B Debentures, this will be effective June 30, 2016, which is the first possible date for redemption of the Series B Debentures.
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