CALGARY, AB, Jan. 26, 2021 /CNW/ - (TSX: PMT) –
Perpetual Energy Inc. ("Perpetual" or the "Company") today received
the Alberta Court of Appeal's (the
"Court of Appeal") judgment (the "Court of Appeal Judgment") with
respect to the appeals heard by the Court of Appeal on December 10, 2020 relating to the sale by
Perpetual of legacy shallow gas properties in October 2016 to an arm's length third party
purchaser after an extensive and lengthy marketing, due diligence
and negotiation process (the "Sequoia Disposition").
The Court of Appeal Judgment dismissed the appeal filed by
Perpetual and granted certain aspects of the appeals filed by
PricewaterhouseCoopers Inc. LIT ("PwC"), in its capacity as trustee
in bankruptcy of Sequoia Resources Corp. ("Sequoia"), with respect
to the Alberta Court of Queen's
Bench judgments of August 15, 2019
and August 26, 2020 pertaining to the
Sequoia Disposition.
As previously disclosed, on January 14,
2021, the Court of Queen's Bench released its decision with
respect to Perpetual's application to strike and summarily dismiss
the claim brought under Section 96 of the Bankruptcy and
Insolvency Act (the "BIA Claim") finding that PwC could
not establish a necessary element of the BIA Claim as
Sequoia was not insolvent at the time of, nor rendered insolvent
by, the Sequoia Disposition. The Court of Queen's Bench therefore
concluded there is "no merit" to the BIA Claim and it was
summarily dismissed. On January 21,
2021, PwC filed a notice of appeal of this judgment to the
Court of Appeal.
Perpetual continues to believe that all of the outstanding
claims brought by PwC in relation to the Sequoia Disposition are
completely opportunistic and entirely without merit and it will
continue to vigorously defend itself against them. The Company
remains highly confident that it will be completely successful in
defending the outstanding aspects of PwC's claims.
The Memorandum of Judgment of the Court of Appeal has been
posted to the Company's website at www.perpetualenergyinc.com.
Further information can be obtained by reviewing the public court
documents that pertain to appeal numbers 1901-0255-AC, 1901-0262-AC
and 2001-0174-AC as filed with the Court of Appeal.
About Perpetual
Perpetual is an oil and natural gas exploration, production and
marketing company headquartered in Calgary, Alberta. Perpetual owns a
diversified asset portfolio, including liquids-rich natural gas
assets in the deep basin of west central Alberta, heavy oil and shallow natural gas in
eastern Alberta, with longer term
opportunities through undeveloped oil sands leases in northern
Alberta. Additional information on
Perpetual can be accessed at www.sedar.com or from the Company's
website at www.perpetualenergyinc.com.
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
Forward-Looking Information
Certain information regarding Perpetual in this news release
including management's assessment of future plans and operations
may constitute forward-looking information or statements under
applicable securities laws. The forward looking information
includes, without limitation, statements made with respect to the
Company's ability to successfully defend itself with respect to
ongoing litigation. Various assumptions were used in drawing
the conclusions or making the forecasts and projections contained
in the forward-looking information contained in this news release,
which assumptions are based on management's analysis of historical
trends, experience, current conditions and expected future
developments pertaining to Perpetual and the industry in which it
operates as well as certain assumptions regarding the matters
outlined above. Forward-looking information is based on current
expectations, estimates and projections that involve a number of
risks, which could cause actual results to vary and, in some
instances, to differ materially from those anticipated by Perpetual
and described in the forward-looking information contained in this
news release. Undue reliance should not be placed on
forward-looking information, which is not a guarantee of
performance and is subject to a number of risks or uncertainties,
including without limitation those described under "Risk Factors"
in Perpetual's Annual Information Form and MD&A for the year
ended December 31, 2019 and those
included in other reports on file with Canadian securities
regulatory authorities which may be accessed through the SEDAR
website (www.sedar.com) and at Perpetual's website
(www.perpetualenergyinc.com). In addition, defence costs of
legal claims can be substantial, even with respect to claims that
have no merit and due to the inherent uncertainty of the litigation
process, the resolution of the legal proceeding to which the
Company has become subject could have a material effect on the
Company's financial position and results of operations. Readers are
cautioned that the foregoing list of risk factors is not
exhaustive. Forward-looking information is based on the estimates
and opinions of Perpetual's management at the time the information
is released, and Perpetual disclaims any intent or obligation to
update publicly any such forward-looking information, whether as a
result of new information, future events or otherwise, other than
as expressly required by applicable securities law.
SOURCE Perpetual Energy Inc.