Gasfrac : Court Approves Deal For Purchase Of Operating Assets And Services

(RTTNews) - Gasfrac Energy Services Inc. (GFS.TO) said that it has obtained the approval of the Court of Queen's Bench of Alberta in respect of a definitive asset purchase agreement entered into between GASFRAC and a third party oil and gas service industry partner, whereby GASFRAC would purchase certain fracking assets and related services.

The Purchase Transaction will assist GASFRAC in maintaining continued operations following completion of the previously announced sale transaction involving STEP Energy Services Ltd. announced in March 3, 2015, under the supervision of its board of directors and Ernst & Young Inc., the court appointed monitor.

The company has also entered into an indicative term sheet with the same third party which contemplates, creditor and court approval and customary closing conditions, a proposed CCAA plan of compromise and arrangement, pursuant to which such third party would acquire 100% equity ownership of GASFRAC, as an operating entity.

The Purchase Transaction and proposed Plan will not affect the completion of the Asset Sale Transaction contemplated to be completed in early April, 2015.

The Purchase Transaction is expected to be completed prior to the end of March, 2015 and the Plan is anticipated to be completed in June, 2015.