Alberta court denies attempt to block Sanjel sale by bondholders claiming ‘bad faith’

, International

Bondholders allege Sanjel 'used the guise of good faith negotiations as a means of depriving bondholders of their opportunity to protect their interests'.

CALGARY – Bondholder attempts to stop insolvent Sanjel Corp.’s blockbuster sale of its fracking business in Canada and the U.S. have been denied.

In a motion filed in Alberta’s Court of Queen’s Bench, the bondholders alleged that Sanjel, one of the largest fracking companies in Canada, “used the guise of good faith negotiations as a means of depriving bondholders of their opportunity to protect their interests.”

They said they were “shocked” to learn of the sale of Sanjel’s fracking business after multiple attempts to restructure the company’s debts.

The creditors had also signalled their intention to go after Sanjel’s landlord, which is owned by Sanjel’s shareholders, to recoup some of the US$300 million they say they are owed.

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