The firm represented Ernst & Young Inc. (the “Receiver”) in its capacity as court-appointed receiver and manager of the assets and undertaking of Terra Energy Corp. and related entities (collectively, “Terra Energy”), an oil and gas exploration and production company with operations in Northeastern B.C. and northwestern Alberta.
The Receiver undertook a sale process in respect of certain oil and gas assets in B.C. and Alberta. This case involved some complexity as it required the consideration and navigation of differing regulatory regimes in two jurisdictions. It also required significant engagement with the B.C. Oil and Gas Commission, including in relation to seeking and obtaining court approval for proposed sales, which were ultimately concluded.
This case highlights the ability of secured creditors, through court-appointed receivers, realizing on distressed assets in the context of an uncertain regulatory environment.