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Tuscany International Drilling Appoints FTI’s Helkaa as CRO

December 02, 2013, 07:39 AM
Filed Under: Turnaround Management

Tuscany International Drilling Inc.entered into an amending agreement (the "Amending Agreement") to its US $255 million senior secured guaranteed credit agreement with Credit Suisse AG, Cayman Islands Branch, as administrative agent (the "Agent") and various lenders thereto (the "Credit Agreement").

The Amending Agreement will allow the Company to make withdrawals from its debt service reserve account in accordance with the terms of the Credit Agreement, as amended by the Amending Agreement, up until January 2, 2014, or such other date as may be agreed to by the Agent and a required majority of lenders under the Credit Agreement. The proceeds from withdrawals from the debt service reserve account will be used to finance operating expenses, specified capital expenditures, restructuring costs and general corporate purposes and to pay fees and expenses related to the Amending Agreement.

The Amending Agreement provides for other material amendments to the Credit Agreement. In accordance with the terms of the Amending Agreement, the Company will be obligated to market certain undeployed assets, make mandatory repayments to the Agent upon the disposition of its assets and to deliver a restructuring plan to the Agent and the lenders. The Amending Agreement also requires the Company to report to the Agent and the lenders on its projected cash receipts and operating and capital expenditures and to ensure that actual receipts and expenditures are in accordance with such projections.

In order to satisfy the conditions associated with the Amending Agreement, the company has engaged Deryck Helkaa of FTI Consulting Canada Inc. ("FTI") as chief restructuring officer of the Company (the "CRO"). Helkaa is a senior managing director with FTI, a global business advisory and consulting firm, and has been retained to further assist the Company with its review of strategic alternatives that was previously announced on April 8, 2013. Helkaa shall report directly to the Special Committee of the Board of Directors of the Company and shall be responsible, in consultation with the Special Committee and the management of the Company, for proposing actions reasonably necessary to successfully restructure the assets and liabilities of the Company.

Tuscany, a corporation headquartered in Calgary, Alberta, is engaged in the business of providing contract drilling and work-over services along with equipment rentals to the oil and gas industry. Tuscany is currently focused on providing services to oil and natural gas operators in South America and Africa. Tuscany has operating centers in Colombia, Brazil, Ecuador and France.

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