CALGARY, AB, Jan. 15, 2021 /CNW/ – (TSX: PMT) – Perpetual Energy Inc. (“Perpetual” or the “Company”) is pleased to announce that the Alberta Court of Queen’s Bench (the “Court”) has summarily dismissed the balance of the Statement of Claim filed by PricewaterhouseCoopers Inc. LIT (“PwC”), in its capacity as trustee in bankruptcy of Sequoia Resources Corp. (“Sequoia”) against Perpetual, Perpetual Operating Trust, Perpetual Operating Corp. (collectively the “Perpetual Entities”) and Susan Riddell Rose, the Company’s President and Chief Executive Officer (“Ms. Rose”). These claims relate to a transaction that involved the sale by Perpetual of legacy shallow gas properties in October 2016 to an arm’s length third party purchaser after an extensive and lengthy marketing, due diligence and negotiation process (the “Sequoia Disposition”).
On February 25, 2020, Perpetual filed an application to strike and summarily dismiss the claim brought under Section 96 of the Bankruptcy and Insolvency Act (the “BIA Claim”). The Court found that PwC could not establish a necessary element of the BIA Claim as Sequoia was not insolvent at the time of, nor rendered insolvent by, the Sequoia Disposition. The Court therefore concluded there is “no merit” to the BIA Claim and it was summarily dismissed.
As previously disclosed, the Court has struck or summarily dismissed all other claims by PwC against the Perpetual Entities and Ms. Rose. PwC contested the previous decision. The appeal was heard by the Court of Appeal of Alberta on December 10, 2020 and its decision is still pending.
The written reasons for the Court’s decision on the BIA Claim have been posted to the Company’s website at www.perpetualenergyinc.com or may be obtained by reviewing the public court documents that pertain to Court action number 1801-10960, as filed with the Court, Calgary Judicial Centre.
Perpetual is an oil and natural gas exploration, production and marketing company headquartered in Calgary, Alberta. Perpetual has a diversified asset portfolio, including liquids-rich natural gas assets in the deep basin of west central Alberta, heavy oil and shallow natural gas in eastern Alberta, with longer term opportunities through undeveloped oil sands leases in northern Alberta. Additional information on Perpetual can be accessed at www.sedar.com or from the Corporation’s website at www.perpetualenergyinc.com.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
Certain information regarding Perpetual in this news release including management’s assessment of future plans and operations may constitute forward-looking information or statements under applicable securities laws. The forward looking information includes, without limitation, statements made with respect to the Company’s ability to successfully defend itself with respect to ongoing litigation and the potential course of actions that can be taken in doing so. Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this news release, which assumptions are based on management’s analysis of historical trends, experience, current conditions and expected future developments pertaining to Perpetual and the industry in which it operates as well as certain assumptions regarding the matters outlined above. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by Perpetual and described in the forward-looking information contained in this news release. Undue reliance should not be placed on forward-looking information, which is not a guarantee of performance and is subject to a number of risks or uncertainties, including without limitation those described under “Risk Factors” in Perpetual’s Annual Information Form and MD&A for the year ended December 31, 2019 and those included in other reports on file with Canadian securities regulatory authorities which may be accessed through the SEDAR website (www.sedar.com) and at Perpetual’s website (www.perpetualenergyinc.com). In addition, defence costs of legal claims can be substantial, even with respect to claims that have no merit and due to the inherent uncertainty of the litigation process, the resolution of the legal proceeding to which the Company has become subject could have a material effect on the Company’s financial position and results of operations. Readers are cautioned that the foregoing list of risk factors is not exhaustive. Forward-looking information is based on the estimates and opinions of Perpetual’s management at the time the information is released, and Perpetual disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or otherwise, other than as expressly required by applicable securities law.
SOURCE Perpetual Energy Inc.
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