Deals
Lightstream Resources Plans New Debt Swap to Stay in Business
- Oil producer would give most of equity to secured noteholders
- Court grants order for creditor protection as talks continue
This article is for subscribers only.
Top-ranked bondholders of Lightstream Resources Ltd. could take control of the struggling Canadian energy company under a proposed debt-for-equity swap, dealing another blow to creditors left out of a previous rescue plan.
The oil producer, facing a July 15 deadline to make an interest payment, tentatively agreed to give secured noteholders a 95 percent equity stake, according to a statement. The deal includes forbearance on Lightstream’s overdrawn revolving credit line while the company works out a plan to stay in business, according to the statement. If that doesn’t work, Lightstream said it hired TD Securities Inc. to sell the business or its assets.