Canada

Palliser Oil & Gas is seeking creditor protection under the CCAA act, it said yesterday, as the junior oil and gas company failed to repay its oustanding debts. The company, in a statement released after market close Monday, said its board has determined that it is in the best interests of shareholders to file for creditor protection on February 12 under the Companies' Creditors Arrangement Act (CCCAA). The decision comes after Palliser received a notice from lender National Bank of Canada that the company's $40 million in debt must be repaid in full by February 6.

Valeant Pharmaceuticals International Inc will scoop up bankrupt cancer vaccine maker Dendreon Corp, after no additional qualified bids came forward by Tuesday's deadline, Valeant said. A potential buyer dropped from the bidding process, three sources close to the sale told Reuters earlier. Valeant, of Laval, Quebec, will get Seattle-based Dendreon's Provenge cancer treatment and other assets for $400 million in cash. Dendreon and Valeant will seek court approval of the sale on Feb. 20, Valeant said. It expects to close the deal by the end of this month.

With their store leases up for grabs, major Target Canada landlords are suggesting the insolvent discounter be pushed into all-out bankruptcy as a way to remove the retailer from controlling the lease sales and other wind-down proceedings, The Globe and Mail reported. The landlords’ Target leases could fetch $1.8-billion to $2-billion, according to one analyst. But under the current court-monitored insolvency process, the auctioning of their leases is essentially being run by the departing retailer.

With their store leases up for grabs, major Target Canada landlords are suggesting the insolvent discounter be pushed into all-out bankruptcy as a way to remove the retailer from controlling the lease sales and other wind-down proceedings, The Globe and Mail reported. The landlords’ Target leases could fetch $1.8-billion to $2-billion, according to one analyst. But under the current court-monitored insolvency process, the auctioning of their leases is essentially being run by the departing retailer.

An onerous transportation contract entered by Cliffs Natural Resources' Bloom Lake iron ore operation in Canada will be renegotiated under Bloom's creditor protection filing, Cliffs' chief executive said on Tuesday. Lourenco Goncalves said the contract with the Quebec North Shore and Labrador Railway that has Bloom Lake on the hook for $450 million has been stayed by a Quebec judge as part of Bloom Lake's filing last week in Canada. "It will be negotiated. When a contract is stayed it means it is no longer valid," Goncalves said in an interview.

Canadian miner SouthGobi Resources Ltd. said it could be forced into insolvency if a Mongolian court’s ruling that it evaded taxes isn’t reversed, the Financial Post reported. SouthGobi and three former employees were found guilty of the charge on Friday, ending a three-year investigation that’s been scrutinized for its impact on foreign investment and the nation’s treatment of overseas nationals. U.S.

Cliffs Natural Resources Inc. sought creditor protection in Canada for its Bloom Lake iron ore mine, potentially cutting the cost of closing it down, Bloomberg News reported. Bloom Lake General Partner Ltd. and certain affiliates started restructuring proceedings in Montreal under Canada’s Companies’ Creditors Arrangement Act, Cliffs said in a statement on Tuesday. Cliffs, the largest U.S. iron ore producer, has been looking at options to sell Bloom Lake for several months and said earlier this month it suspended production there amid a slump in prices.

A group of Canadian and other investments banks agreed to pay a total of 32.5 million Canadian dollars (US$26.1 million) to settle claims related to their role as underwriters to help Sino-Forest Corp. sell stock, The Wall Street Journal reported. The dealers “do not admit any wrongdoing or liability” under the agreement, which would settle shareholder allegations that Sino-Forest’s public filings “contained false and misleading statements about [its] financial results, assets, business and transactions,” according to a copy of the pact filed with the Ontario Superior court.

Canadian wireless startup Mobilicity said on Tuesday it will participate in an upcoming government auction of airwaves. The struggling wireless carrier, which sought creditor protection in the fall of 2013, has been trying unsuccessfully to find a buyer for months after its attempts to sell to well-established rival Telus were stymied by the Canadian government, which is seeking to boost competition in the wireless sector.

Canadian oil exploration company Southern Pacific Resource Corp. has sought protection from creditors with an insolvency filing under Canada’s bankruptcy law, The Wall Street Journal reported. Southern Pacific Resource said Wednesday it determined that protection under Canada’s Companies’ Creditors Arrangement Act was in its best interest, considering the world-wide low oil and gas prices and its own depressed levels of production. The company added that it has sufficient liquidity to last through its initial protection period in Canada, which expires Feb. 20.