According to Financial Post:
CALGARY — As oil sands developer BA Energy Inc. seeks help from an Alberta court Friday to prevent a fire sale of its assets and appease nervous bankers, it joins a growing list of Canadian oil and gas companies fighting for their lives amid the credit crunch.
While so far only smaller players have run into trouble, insolvency experts say the flood of energy companies headed to court will swell if energy prices stay weak.
BA Energy Inc., developer of the $4-billion Heartland Upgrader near Edmonton, became the first oil sands company to file for bankruptcy protection, worried that its parent’s major lender will recall a US$507-million loan.
Read the Full Article at Financial Post:
- Welcome to the real world, Canada Tar Sands used commonly by the very positive people in the world as “larger” then Saudi Arabia is in serious financial trouble.
This may not be a surprise to many as many other industry is struggling as well, so far only small oil sand firms got into trouble however….it may spread deeper into the bigger oil sand companies if their debts start to swell bigger and bigger and loans are harder to get.
What happens after more then 50% of the oil sands company goes bankrupt and stopped their operation?
You will have an immediate decline in oil supply from Canada with great implication including more reliance on oil from middle east & definitely one of the worst downgrade in standard of living.
The tipping points is reaching…or had already passed.
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