April 13, 2016
The distressed market in Canada, including in the oil and gas sector, continues to see some businesses facing financing and other challenges while investors remain on alert for the right opportunities. Corporate Restructuring and Advisory partner David Bish has been interviewed about distressed Canadian companies for Debtwire’s “Treasure hunt: the search for capital for distressed Canadian oil companies.” Below is an excerpt of the article.
DW (Debtwire): How are Canadian oil sands producers positioning themselves to survive the global commodity downturn given the technical and operational difficulties that arise from production cuts?
DB: We’re seeing a lot of people start to focus on a mid- to long-term strategy. People have been preoccupied with short-term focus in terms of dealing with the immediate crisis, and there hasn’t been as much longer-term thinking about how to deal with it. I think the short-term solutions that people have turned to are largely five-fold. They’re suspending their E&P activities, including new wells. They’re looking to capital expenditure and budget cuts, and in some cases they’re looking to shut in existing wells and decrease production—sometimes in part and sometimes going entirely dormant. They’ve been looking at layoffs and there have certainly been significant rounds of layoffs that have occurred. I don’t think we’ve seen the end of that. And they’ve been looking at non-core asset sales.
Download a PDF of the full article here.