April 18, 2016
The ongoing volatility in commodities and oil prices has impacted not only resource producers, but other players such as lenders and potential acquirors. This pervasive environment of uncertainty, as reported in a Law Times article, has played a part in staving off large-scale restructuring in the oil and gas sector at the present time. Partner and head of Torys’ Canadian Corporate Restructuring and Advisory Practice, Tony DeMarinis, shared his perspective with Law Times. Below is an excerpt of the article.
“You are seeing quite a few instances in the extraction industries where companies are in need of doing a restructuring or a strategic process,” says [Tony] DeMarinis.
“There’s only so many things you can do when a company is in financial distress,” he adds. “You can try to work something out with existing creditors or try to amend the terms of the debt.”
“Otherwise, you sell the business. However, he says, “In a market where there aren’t many buyers, that starts drying up.”
To read a PDF of the article, click here.