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CALGARY, A.B. – One of Petrowest Corporation’s lenders is considering an offer to acquire two of the company’s divisions after it filed for receivership last week.
Calgary-based Crown Capital Partners Inc., which provides growth capital to mid-market companies, announced that it supports the application for receivership and plans to work with the receiver to maximize the proceeds for all Petrowest stakeholders. Crown said that the maintenance of Petrowest’s Civil and Rental divisions are a key factor in the successful recovery of money that it loaned to the company.
The lender added that it is working to formalize an offer to acquire all of Petrowest’s Civil and Rental division assets through the assumption of a portion of Crown’s outstanding debt.
“We look forward to finalizing our offer to acquire the Civil and Rental divisions as soon as possible,” said Crown President and CEO Chris Johnson in a statement. “We believe these are well run operations with long histories of profitable operation that meet our high quality investment standards.”
Crown explained that Petrowest currently owes $25 million in outstanding loans, at an effective interest rate of approximately 36.5 percent.
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