Calgary-based infrastructure specialist Petrowest Corp (TSX: PRW) said it has consented to the appointment of a receiver after lenders demanded immediate repayment of all amounts owing under the company’s credit facilities. Canadian specialty finance firm Crown Capital Partners, which has $25 million of loans outstanding to Petrowest, said it will work with the receiver to maximize proceeds for all stakeholders. Crown also announced it is formalizing an offer to acquire the assets of Petrowest’s civil and rental divisions, which it believes should be maintained as “going concerns.”
Crown Capital Comments on Petrowest Corporation
CALGARY, Aug. 15, 2017 /CNW/ – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today commented on the recent announcement by Petrowest Corporation (“Petrowest”) (TSX:PRW) that its banking syndicate have provided a notice demanding immediate repayment of all amounts owing under the credit facilities. Petrowest also announced that its Board of Directors have consented to the appointment of a receiver.
Crown supports the application for receivership and plans to work with the receiver to maximize the proceeds for all Petrowest stakeholders. Key to the successful recovery of Crown’s loans is the maintenance of Petrowest’s Civil and Rental divisions as going concerns. Crown is working to formalize an offer to acquire all the assets of the Civil and Rental divisions through the assumption of a portion of Crown Capital Fund IV, LP’s outstanding debt.
“We look forward to finalizing our offer to acquire the Civil and Rental divisions as soon as possible,” said Chris Johnson, President and CEO of Crown. “We believe these are well run operations with long histories of profitable operation that meet our high quality investment standards.”
Crown Capital Fund IV, LP has a total of $25 million of loans outstanding to Petrowest. Crown has an effective interest of approximately 36.5% in Crown Capital Fund IV, LP.
Crown (TSX: CRWN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies that are unwilling or unable to obtain suitable financing from traditional capital providers such as banks and private equity funds. Crown also manages capital pools, including some in which Crown has a direct ownership interest. Crown originates, structures and provides tailored special situation and long-term financing solutions to a diversified group of private and public mid-market companies in the form of loans, royalties and other structures with minimal or no ownership dilution.
For further information: Craig Armitage, Investor Relations, firstname.lastname@example.org, (416) 347-8954
Photo courtesy of Petrowest Corp