CALGARY, Alberta, Oct. 26, 2026 (GLOBE NEWSWIRE) — Prairie Provident Resources Inc. (the “Company”) (TSX: PPR) announces that its senior secured lenders, The Prudential Insurance Company of America and Prudential Legacy Insurance Company of New Jersey (collectively, “Prudential”), have served on the Company an application to the Court of King’s Bench of Alberta (the “Court”) for an initial order (the “Initial Order”) under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”) initiating creditor-led proceedings in respect of the Company and its wholly-owned subsidiary, Prairie Provident Resources Canada Ltd. (together with the Company, “Prairie Provident”). Prudential’s application is scheduled to be heard by the Court on October 27, 2026 at 10:00 a.m. (Calgary time).
If granted, the Initial Order will, among other things, appoint Alvarez & Marsal Canada Inc. as monitor of Prairie Provident (in such capacity, the “Monitor”), with enhanced powers that include broad authority to manage and operate Prairie Provident’s business, control Prairie Provident’s bank accounts and cash management, conduct a sales and investment solicitation process in respect of Prairie Provident’s business and property, and exercise any rights that Prairie Provident may have. The Initial Order would provide for a stay of any proceedings against Prairie Provident or affecting its business or property until November 6, 2026 or such later date as the Court may order.
The Company is not opposing the application and anticipates that the Initial Order will be granted, upon which the directors and officers of the Company will concurrently resign. Day-to-day operations are expected to continue in the ordinary course during the CCAA proceedings under the Monitor’s direction, and current employees and consultants of Prairie Provident will remain employees and consultants upon the granting of the Initial Order.
As a result of the creditor proceedings against the Company, trading of the Company’s common shares on the Toronto Stock Exchange (“TSX”) is expected to be halted before market open on October 27, 2026. If the Initial Order is granted, the Company anticipates that the trading halt will remain in effect pending delisting of the common shares by TSX.
As previously-announced, the Company was in breach of certain financial covenants as at June 30, 2026 under the agreements governing its first lien loan with Prudential and outstanding second lien notes held by certain of Prudential’s affiliates. No waivers or similar accommodations in respect of those breaches were granted, and Prudential has had a continuing right to demand immediate repayment of all amounts owed. The Company has in the weeks following remained engaged with Prudential, as well as the holders of the outstanding second lien notes and preferred shares of Prairie Provident and significant majority of the Company’s common shares, to discuss alternatives.
These discussions formed part of a broad review of strategic alternatives undertaken by the directors and management of the Company over the past several months with a view to the best interests of the Company and its various stakeholders, during which the Company has actively explored prospective transaction opportunities to address its capital structure generally – including a consensual out-of-court restructuring of the Company’s indebtedness.
Ultimately, the Company and Prudential were unable to reach agreement on a transaction or out-of-court restructuring, and Prudential determined to commence CCAA proceedings.
If the Initial Order is granted, a copy thereof together with Prudential’s application materials are expected to be made available on the proposed Monitor’s website.
The form of Initial Order sought authorizes Prairie Provident, or the Monitor on its behalf, to not incur any additional costs in relation to further filings under applicable Canadian securities laws and TSX rules, including continuous disclosure filings. The Company anticipates that the Monitor, if appointed, will exercise this authority, such that no further financial or other reporting will be made by the Company outside of what may be required pursuant to the CCAA proceedings. In particular, if the Initial Order is granted then the Company will likely not file or otherwise release its interim financial statements and MD&A for the period ended September 30, 2026.
Forward-Looking Statements
This news release contains certain statements (“forward-looking statements”) that constitute forward-looking information within the meaning of applicable Canadian securities legislation. These statements relate to future events or future performance. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “budget”, “plan”, “continue”, “estimate”, “expect”, “forecast”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. In particular, this news release contains forward-looking statements pertaining to, without limitation, the following: the timing of the hearing of Prudential’s application; whether the Court will grant the Initial Order and the terms thereof; the anticipated powers of the Monitor; the conduct and outcome of any sale and investment solicitation process; delisting of the Company’s common shares from TSX; and future filings under applicable securities laws and TSX rules.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on the risks and uncertainties facing the Company is contained in the Company’s annual information form and other continuous disclosure documents filed under the Company’s profile on SEDAR+ at www.sedarplus.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release speak only as of the date hereof and the Company does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.
For further information:
Prairie Provident Resources Inc.
(403) 292-8000
investor@ppr.ca