Mosaic Energy Limited completes sale of its assets for C$327 million pursuant receivership order

Date Closed

January 17, 2017

Lead Office



128.00 Million CAD

On April 26, 2016, Ernst & Young Inc. ("EY") were appointed as receiver of the property, assets and undertakings of Mosaic Energy Limited ("Mosaic") pursuant to an order of the Court of the Queen's Bench of Alberta. The order authorized EY to carry on the business of Mosaic and to sell, convey, transfer, lease or assign Mosaic's assets, subject to the approval of the Court for any transactions exceeding C$1 million or the aggregate of multiple transactions exceeding C$5 million.

On June 21, 2016, the Court approved the sale and investment solicitation process which resulted in the sale of Mosaic's oil and gas properties in three separate transactions. On December 14, 2016, the Court granted an order authorizing EY to fully repay the indebtedness owed from Mosaic to a syndicate of financial institutions representing Mosaic's senior secured creditor. On January 17, 2017, EY fully repaid the borrowings outstanding to the syndicate from Mosaic with the proceeds recovered from two of the sale transactions. The debt owed by Mosaic to the syndicate amounted to C$128 million. National Bank of Canada ("National Bank") acted as agent to the syndicate.

Mosaic, headquartered in Calgary, is a company focused on the exploration for and the development, production and acquisition of petroleum and natural gas reserves and is primarily focused on multi zone horizons in the deep basin of the Western Canadian sedimentary basin.

National Bank, headquartered in Montréal, is one of Canada's leading integrated financial groups.

McCarthy Tétrault LLP advised National Bank with a team led by Sean Collins (Bankruptcy and Restructuring) that included Peter Birkness (Financial Services), Walker MacLeod (Bankruptcy and Restructuring), Pantelis Kyriakakis (Bankruptcy and Restructuring), Theodore Stathakos (Litigation) and Matthew Bell (Financial Services).