CALGARY, Alberta (Reuters) - Twin Butte Energy TBE.TO debenture holders, who on Monday rejected a takeover bid by Reignwood Resources Holding Pte Ltd, have made an alternative proposal on the deal to the Canadian oil producer's special committee, a source familiar with the situation said on Tuesday.
The source, who is not authorized to speak to the media, said the proposal represented a better deal for debenture holders than what Reignwood had suggested but declined to give specifics.
Twin Butte's long-term debtholders voted against the proposal by Hong Kong's privately held Reignwood to pay C$140 for every C$1000 amount of debentures, or 14 Canadian cents to the dollar.
The source said debenture holders were hopeful that with Reignwood's initial offer voted down, there would be scope for a more "meaningful dialogue," although there had been no response from Twin Butte's special committee.
The special committee of non-management directors was formed during a strategic review process started last December of the cash-strapped company's operations and assets.
Twin Butte did not immediately respond to a request for comment.
The company was producing around 13,000 barrels of oil equivalent per day in the second quarter of 2016, down 27 percent from the same period last year. It focuses on medium and heavy oil operations around the Alberta-Saskatchewan border.
Reporting by Nia Williams; Editing by Dan Grebler