Oilexco to liquidate remaining assets

Thu Jul 16, 2009 11:23pm EDT
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(Reuters) - Bankrupt Canadian oil company Oilexco said on Thursday it obtained a court order permitting it to liquidate the remainder of its assets and propose a plan of compromise and arrangement to its creditors.

The Calgary, Alberta-based oil explorer, which filed for protection in February under the Companies' Creditors Arrangement Act, said the net proceeds of the liquidation will be distributed to creditors in proportion to the amount of the proven claim.

Oilexco said it expects to complete the liquidation by September 30.

Ernst & Young, which was acting as the court appointed monitor while Oilexco was under CCAA protection, will oversee the liquidation.

Earlier this year Britain's Premier Oil bought the North Sea unit of Oilexco for $505 million.

(Reporting by Ajay Kamalakaran in Bangalore)