CALGARY, ALBERTA–(Marketwired – June 29, 2016) – Tuscany Energy Ltd. (TSX VENTURE:TUS) (“Tuscany” or the “Company“) announces that following extensive discussions with its lender under its credit facility, ATB Financial (“ATB“) has demanded repayment of all amounts owing thereunder, being approximately $8.5 million, and delivered a Notice of Intention to Enforce Security under section 244 of the Bankruptcy and Insolvency Act (Canada) (the “BIA“) whereby ATB sets forth its intention to enforce its security for repayment of the loan. In connection therewith, the Company has consented to the early enforcement by ATB of its security and to the appointment of a receiver over its Saskatchewan based assets. The application for the appointment of the receiver is scheduled to be heard at 10:00 a.m. (Saskatoon time) on June 30, 2016 at Court of Queen’s Bench in Saskatoon, Saskatchewan. In connection therewith, the Company also intends to file an assignment in bankruptcy under the BIA with respect to its remaining assets. Following such, the receiver of the Saskatchewan based assets and the trustee in bankruptcy in respect of Tuscany’s remaining assets, which is expected to be Grant Thornton Limited in both cases, will be in charge of managing the day-to-day affairs of Tuscany and should be contacted with respect to any questions concerning the assets and liabilities of the Company. Upon the appointment of the receiver and the assignment in bankruptcy being made, it is expected that all of Tuscany’s directors will resign.
As previously announced, the Company initiated a process in December 2015 to identify and examine strategic alternatives for the purpose of enhancing shareholder value. Although it discussed possible transactions with various parties, the prolonged depression in commodity prices and resulting negative impact on the Company’s operating results and equity markets resulted in its inability to secure a timely transaction on acceptable terms.