Calfrac says appeal court rejects Wilks Brothers attempt to block recapitalization

CALGARY — Calfrac Well Services Ltd. says the Alberta Court of Appeal has rejected an attempt by Wilks Brothers LLC to block the approval of the company's recapitalization plan.

The company says it has been advised by the court that the Wilks Brothers' appeal of the final order approving the plan has been dismissed.

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Texas-based Wilks Brothers had opposed Calfrac's recapitalization plan and offered its own hostile takeover offer as an option.

However, the company's debtholders and shareholders instead opted for management's plan that will see holders of Calfrac's senior unsecured notes swap debt for shares, leaving existing shareholders with a reduced stake in the company.

An Alberta court issued a final order this month approving the company's plan.

Calfrac says it intends to complete its recapitalization transaction as soon as possible.

This report by The Canadian Press was first published Nov. 27, 2020.

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