Oil Servicers Still Struggle as Canadian Producers Ramp Up

18 Apr 2017   Canada

Only 34% of servicing businesses have no risk of insolvency Moody’s says Calfrac will likely need to restructure debt The worst may not be over for everyone in Canada’s oil patch even as crude prices show signs of stability. While producers are on firmer footing, oilfield service companies are still keeping restructuring advisers and lawyers busy as the effects of nearly three years of depressed oil prices continue to roll through one of Canada’s most important industries. About 48 percent of Canada’s publicly traded oil, gas and consumable fuels companies aren’t in any danger of insolvency, whereas only 34 percent of energy equipment and services companies are in the clear, according to data analyzed by PwC. “The big oil producers have seen the worst; it’s the continued fallout that’s causing even more concern,” said Kyle Kashuba , a partner in Torys LLP’s restructuring practice in Calgary. “It’s the ripple […]

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