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Calfrac delays vote on recapitalization plan to Sept. 29 after Wilks Brothers offer

A file photo of the logo for Calfrac Well Services. CREDIT: https://www.calfrac.com/

Calfrac Well Services Ltd. is postponing a vote on its recapitalization plan following an unsolicited takeover offer for the company by Texas-based Wilks Brothers LLC.

The Calgary-based company says it will now hold a vote by its shareholders and unsecured noteholders on the management reorganization plan on Sept. 29 instead of Sept. 17.

Wilks Brothers, which owns a nearly 20 per cent stake in the company and opposes the recapitalization plan, has made an offer of 18 cents per share for Calfrac.

The company says its board of directors will review the takeover offer and make a formal recommendation to shareholders by Sept. 24.

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Calfrac’s reorganization under the Canada Business Corporations Act must be supported by two-thirds of Calfrac’s debtholders and shareholders in separate votes to proceed.

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It has said that its proposal has the backing of 78 per cent of the holders of senior unsecured notes.

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