Canacol Energy Seeks Creditor Protection to Pursue Restructuring

Core Viewpoint - Canacol Energy Ltd. is seeking creditor protection under the Companies' Creditors Arrangement Act (CCAA) due to a liquidity crisis and other financial challenges [1][2]. Group 1: Financial Position and Restructuring - The decision to initiate CCAA proceedings was made by the Board of Directors after thorough evaluation of the Company's financial situation and consultations with advisors [2]. - The Company is facing a liquidity crisis due to upcoming interest and principal payments, an unfavorable arbitration ruling resulting in a $22 million liability, reduced natural gas production, and increased accounts payables [2]. Group 2: CCAA Proceedings - Canacol is requesting an Initial Order that includes a stay of proceedings and the appointment of KPMG Inc. as the Monitor [3]. - The Company plans to seek recognition of the Initial Order in the United States and Colombia under applicable laws [4]. Group 3: Market Implications - The Toronto Stock Exchange is expected to place Canacol under delisting review, with uncertain outcomes regarding its continued listing [5].