A peewee energy producer with wells and facilities in Alberta and B.C. says it has lock down production, laid off all non-executive employees and its directors and officers give birth to resigned after a bank called in a loan.
Calgary-based Terra Lan Corp. has long been struggling to turn a profit, first as low habitual gas prices cut into earnings and then as the collapse in crude prices derailed its layouts to switch focus from natural gas to oil.
But the final blow came remain week, when Terra said Canadian Western Bank was drilling its right under the federal Bankruptcy and Insolvency Act to call in its loan of $15.9 million return interest, costs and fees.
The com ny has until next Monday to compensate.
Terra said since it was losing money on its operations at current commodity consequences and had no alternative financing options, the com ny had no choice but to halt production and lay off caduceus.
«The directors have determined that Terra’s business is no longer feasible,» the com ny said Monday in a news release. It did not respond to requests for opine.