Oilsands Quest files for Chapter 15 protection in U.S.

Tue Feb 7, 2012 8:37am EST
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(Reuters) - Canada's Oilsands Quest Inc BQI.A filed for Chapter 15 protection from creditors in a U.S. bankruptcy court, after the troubled Calgary-based company failed to find buyers for its Wallace Creek assets in Alberta.

The company has $100 million to $500 million in assets and $1 million to $10 million in liabilities, it said in a filing with the U.S. bankruptcy court in Southern District of New York.

Chapter 15 protection in the U.S. grants a foreign company protection from creditors and helps avoid conflicts that arise between jurisdictions.

Last week, the Calgary-based explorer said it obtained a debtor-in-possession financing of C$3.8 million for funding company expenses during the proceedings.

Oilsands continues to manage its properties and operate its businesses under the supervision of the Alberta Court, after it received a court order in November to protect it from creditors.

The case is In re: Oilsands Quest Inc, Case No. 12-10476, U.S. Bankruptcy Court, Southern District of New York.

(Reporting by Aftab Ahmed in Bangalore; Editing by Supriya Kurane)