Oilsands Quest Updates Solicitation Process, Announces Intention to Expand Monitor's Powers and Cancels Proposed Listing on the
June 24 2012 - 6:06AM
PR Newswire (Canada)
NYSE MKT: BQI CALGARY, June 26, 2012 /CNW/ - Oilsands Quest Inc.
("Oilsands Quest" or "the Company") continues to work with its
advisor, TD Securities Inc., to review various bids submitted under
the previously announced solicitation process ("the Solicitation
Process") to find investors to acquire, restructure or recapitalize
the Company's business. The Company believes that some of the
bids received could, if subject to further negotiation, be capable
of being brought before the court for approval. Negotiations with
certain bidders are ongoing and Oilsands Quest and its court
appointed monitor, Ernst & Young Inc. (the "Monitor"), have
agreed that the best interests of the Company and its stakeholders
would be served by transferring responsibility for managing the
Company's operations to the Monitor to reduce operating costs. To
accomplish this, the Company intends to apply to the court on
Thursday, June 28, to expand the powers of the Monitor to pursue
the completion of a transaction. If that application is
granted, each member of the Board of Directors intends to resign
and leave oversight of the Company's activities in the Monitor's
hands. The Monitor is expected to take steps to limit the
Company's activities to those core functions necessary to complete
a transaction and to distribute the proceeds to the Company's
stakeholders pursuant to the Companies' Creditors Arrangement Act
("CCAA") process that was launched late in 2011. In combination
with these activities, Oilsands Quest is seeking an extension of
the protection of the CCAA until September 28, 2012, to provide the
Monitor with adequate time to conclude negotiations and to consider
which, if any, of the bids ought to be accepted and brought before
to the court. There can be no assurance that this process will
result in a financing or a sale of the Company or in any other
transaction. As part of limiting of activities to focus on the sale
and distribution process, Oilsands Quest will not be pursuing its
proposed listing on the Canadian National Stock Exchange ("CNSX").
The Company expects its shares to be delisted from the NYSE MKT on
or about July 2, 2012. Trading in the common shares of Oilsands
Quest remains halted on NYSE MKT. About Oilsands Quest Oilsands
Quest Inc. (www.oilsandsquest.com) is exploring and developing oil
sands permits and licences, located in Saskatchewan and Alberta,
and developing Saskatchewan's first commercial oil sands discovery.
Forward-looking statements: This news release includes certain
statements that may be deemed to be "forward-looking statements".
All statements, other than statements of historical facts, included
in this news release that address activities, events or
developments that management expects, believes or anticipates will
or may occur in the future are forward-looking statements.
Forward-looking statements are statements other than relating to
historical fact and are frequently characterized by words such as
"plan", "expect", "project", "intend", "believe", "anticipate",
"estimate", "potential", "prospective" and other similar words or
statements that certain events or conditions "may" "will" or
"could" occur. Forward-looking statements are based on the opinions
and estimates of management at the date the statements are made,
and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking
statements, which include but are not limited to the Company's
ability to raise additional capital, risks associated with the
Company's ability to implement its business plan, its ability to
successfully complete the previously announced Solicitation Process
while under creditor protection, its ability to submit a timely
plan to its stakeholders and the Court under the CCAA and to
resolve its operational, legal and financial difficulties, risks
inherent in the oil sands industry, regulatory and economic risks,
land tenure risks and those factors listed under the caption "Risk
Factors" in the Company's Form 10-Q filed with the Securities and
Exchange Commission on March 8, 2012. The Company undertakes no
obligation to update forward-looking information if circumstances
or management's estimates or opinions should change, except as
required by law. The reader is cautioned not to place undue
reliance on forward-looking statements. Oilsands Quest Inc.
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