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

A file photo of the logo for Calfrac Well Services. CREDIT:

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.

Read more: Wilks Brothers formalizes Calfrac takeover offer ahead of vote on restructuring plan

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

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.

Read more: Wilks Brothers to make offer for Calfrac if recapitalization plan rejected

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