Oil Sands Producer Defaults on Canada Pension Fund Debt
Laricina Energy Says It May Have to Cease Operations If Deal With CPP Isn’t Struck
CALGARY—Junior oil sands producer Laricina Energy Ltd. said it may no longer be able to fund its operations after defaulting on financing extended by Canada’s largest pension fund, the CPP Investment Board.
The privately-held company’s chief executive said Monday that Laricina is in talks with the fund and expressed confidence an agreement would be reached to allow the company to stay in business after it breached a debt pact covenant.
“We would have every expectation that we would come to a conclusion with CPP in our discussions,” CEO Glen Schmidt said in an interview. “CPP has been a strong supporter of the company,” he said.
READ MORE: http://www.wsj.com/articles/oil-sands-producer-defaults-on-debt-to-canadas-biggest-pension-fund-1420497327
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