Redwater court decisions sides with lenders
Redwater Resources -Update
Originally published 21 May 2016
The Alberta Court of Appeal on 24 April upheld Justice Wittman's judgment supporting Grant Thornton as receiver in the Redwater Resources case.
The Redwater court decision promises to become a showdown between the capacity of lenders to realize on the security of oil wells versus the rights of the Crown, the owner of the resource and the regulator.
In a densely worded 58 page decision, Mr. Chief Justice Neil Wittman of the Alberta Court of Queen`s Bench ruled in favour of the trustee in bankruptcy of Redwater Energy Corporation, a secured creditor of Alberta Treasury Branches (ATB Financial- was owed $5.072 million). The highly anticipated decision favoured creditors`rights over environmental regulation. According to Just...