Bankruptcy of energy company may show lenders view industry differently: CAPP
May 2, 2019 | 2:08 PM
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The bankruptcy of a Calgary energy company that plans to walk away from thousands of gas wells may be a sign lenders are changing how they look at the industry in light of a recent Supreme Court ruling.
Brad Herald, vice-president of the Canadian Association of Petroleum Producers, says institutions are now taking a harder look at costs of cleaning up old wells after the so-called Redwater decision.
That decision says bankrupt companies must pay those costs before they’re allowed to sell off any remaining assets.
