Calfrac delays vote on recapitalization plan to Sept. 29 after Wilks Brothers offer

Calfrac delays vote on recapitalization plan to Sept. 29 after Wilks Brothers offer

CALGARY — Calfrac Well Services Ltd. is postponing a vote on its recapitalization plan following an unsolicited takeover offer for the company by Texas-based Wilks Brothers LLC last week.

Calgary-based Calfrac says it will now hold a vote by its shareholders and unsecured noteholders on the management reorganization plan on Sept. 29 instead of Sept. 17.

Wilks Brothers, which owns nearly 20 per cent stake of Calfrac and opposes the recapitalization plan, has made an offer of 18 cents per share for Calfrac.

The company says its board of directors will review the takeover offer and make a formal recommendation to shareholders by Sept. 24.

Proxy advisers Institutional Shareholder Services Inc. and Glass Lewis & Co. published reports last week with the former supporting rejection and the latter urging support for the management reorganization plan.

But Glass Lewis switched its recommendation in light of the formal Wilks Brothers offer for Calfrac, noting 18 cents is “far superior” to the three cents per share common shareholders would receive under the management plan.

Calfrac’s reorganization under the Canada Business Corporations Act must be supported by two-thirds of Calfrac’s debtholders and shareholders in separate votes to proceed.

It has said that its recapitalization proposal has the backing of 78 per cent of the holders of senior unsecured notes.

This report by The Canadian Press was first published Sept. 14, 2020.

Companies in this story: (TSX:CFW)

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Westerner Park audit finds ‘gross operational mismanagement, gaping holes and lack of controls,’ says councillor

Two councillors question audit’s conclusion no inaccuracies were presented to the governance board

160 new COVID-19 cases reported in Alberta on Tuesday

Province now has 1,571 active cases

Lack of nurses stressing Red Deer hospital staff, says union

‘We don’t have enough nurses to do the work that’s required’

Reports of horse fever confirmed in central Alberta

Alberta horse owners are on the alert for the spread of a… Continue reading

QUIZ: Do you know what’s on TV?

Fall is normally the time when new television shows are released

Canadian ‘keeper Dayne St. Clair makes most of MLS opportunity with Minnesota

Canadian ‘keeper Dayne St. Clair makes most of MLS opportunity with Minnesota

U.S. Presidential Debate Takeaways: An acrid tone from the opening minute

Here are key takeaways from the first of three scheduled presidential debates before Election Day on Nov. 3

Forge FC to play in El Salvador on Oct. 22 in CONCACAF League preliminary round

Forge FC to play in El Salvador on Oct. 22 in CONCACAF League preliminary round

Canada’s top coaches connect to navigate relationships with athletes

Canada’s top coaches connect to navigate relationships with athletes

No matter who wins the finals, Kentucky will have champions

No matter who wins the finals, Kentucky will have champions

Canadian Denis Shapovalov advances to second round at French Open

Canadian Denis Shapovalov advances to second round at French Open

Titans have NFL’s 1st COVID-19 outbreak; next game still on

Titans have NFL’s 1st COVID-19 outbreak; next game still on

“It’s a marvel” – Canada’s Levins to race in London marathon bubble Sunday

“It’s a marvel” - Canada’s Levins to race in London marathon bubble Sunday

Most Read