Canacol Energy Limited has requested and been granted protection from the Court of King’s Bench of Alberta under the Companies’ Creditors Arrangement Act (CCAA). The natural gas producer is seeking recognition of its Canadian case in the US via a Chapter 15 petition filed in the Southern District of New York, and will also seek recognition in Colombia.

The energy firm said it faced a looming liquidity crisis ahead of upcoming interest and principal payments, an unfavorable arbitration decision over a USD 22m claim by VP Ingenergia, reduced natural gas production and increased trade and other accounts payables.

A “come back” hearing in the Canadian proceeding is scheduled for 26 November.

Debtwire Restructuring Database Canacol (Access Required)

Debtwire Dockets: Canacol Energy Chapter 15 (Access Required)