Gale Force Petroleum's Creditors Give Thumbs Up to Proposal
Gale Force Petroleum announced that the unsecured creditors overwhelmingly voted to accept the Proposal to Creditors in support of the
Corporation's restructuring plan at a Meeting of Creditors held yesterday. The Proposal to Creditors was filed on February 4, 2009 by the Corporation under the Bankruptcy and Insolvency Act (Canada).
There was as significant turnout in voting, with votes from 56 unsecured creditors counted at the Meeting of Creditors. With respect to Category I Unsecured Creditors, 96% in number and 98% in value voted in favour of the Proposal. With respect to Category II Unsecured Creditors, 100% in number and in value voted in favour of the Proposal.
"The results of the vote are very encouraging", said Michael McLellan, President and CEO. "We very much appreciate the support of the creditors and investors in support of our restructuring efforts."
According to the terms of the Proposal to Creditors, the Corporation will issue up to 47,000,000 common shares to settle all unsecured claims, upon presentation of a proof of claim by each of the unsecured creditors. The Final Approval of the Proposal is subject to sanction by the Court. The shares issued as payment of debts under the Proposal to Creditors are subject to prior applicable regulatory approval.
The Corporation also announced today that Ronald Bourgeois has stepped down from the board of directors, effective on today's date. Mr. Bourgeois also stepped down from the position of Chief Operations Officer.
Jocelyn Boucher, Chairman of the Board, said, "On behalf of the board of directors and the Corporation, I would like to thank Ron Bourgeois for his service, in particular for his help supporting the Corporation carry out its restructuring plan in a highly volatile marketplace."
As part of its restructuring plan, the Corporation is now seeking new financing and further business development opportunities. Further details will be announced when available.