Landdrill Announces Demand for Payment from Secured Creditors and Delay in Filing Financial Statements

    




 MONCTON, NB, Aug. 29, 2012 /CNW/ - Landdrill International Inc.  (the "Company" or "Landdrill"), announces that it has been served with demands for payment and s. 244  notices from its major secured creditors and will be delaying the  filing of its financial statements.  The Company is currently engaged  in a strategic review process.  Landdrill has retained Clarus  Securities Inc. of Toronto as financial advisor to consider all  strategic options including the sale of all or part of the Company or  its operating divisions. 

 The Company, and several of its subsidiaries, were served with a demand  for payment of outstanding indebtedness to Sprott Resource Lending  Partnership ("Sprott"), a secured creditor of the Company, dated August 13, 2012.  The  demand was in the amount of $2,536,173.88 to be paid on or before  August 23, 2012 and was accompanied by a Notice of Intention to Enforce  Security pursuant to Subsection 244(1) of the Bankruptcy and Insolvency Act (Canada) (the "Act").  At this time, the Company had been engaged in forbearance  negotiations with its three major secured creditors and a  representative of Sprott advised that Sprott would continue to  negotiate in good faith towards a forbearance agreement. 

 The Company, and several of its subsidiaries, were served with a demand  for payment of outstanding indebtedness to GE Canada Equipment  Financing G.P. ("GE"), a secured creditor of the Company, dated August 17, 2012.  The  demand was in the amount of $2,875,037.76 to be paid on or before  August 30, 2012 and was accompanied by a Notice of Intention to Enforce  Security pursuant to Subsection 244(1) of the Act. 

 On August 20, 2012, the Company filed a confidential material change  report with regulatory authorities relying upon Subsection 7.1(2) of  National Instrument 51-102 in respect of the aforesaid demands. 

 On August 21, 2012, the Company, and several of its subsidiaries, were  served with a demand for payment of outstanding indebtedness to Norrep  Credit Opportunities Fund, LP ("Norrep"), a secured creditor of the Company, dated August 21, 2012.  The  demand was in the amount of $8,261,738 to be paid on or before August  31, 2012 and was accompanied by a Notice of Intention to Enforce  Security pursuant to Subsection 244(1) of the Act.  At the time of  serving its demand, Norrep advised that it would continue good faith  negotiations with the Company but was desirous of protecting its legal  rights. 

 Landdrill continues to be engaged in negotiations with all of its  secured creditors towards a resolution and the Company is currently  diligently engaged in a strategic review of all available options. 

 The Company anticipates a further announcement will be forthcoming in  the near future. 

 The release of Landdrill's financial statements and MD&A for Q2 will be  delayed until on or about September 6, 2012.  The delay permits  management, the board of directors and Landdrill's external advisors  adequate time to review the financial statements and disclosure in  conjunction with the strategic review process. 

 Forward-looking information 

 This press release may contain forward-looking statements (within the  meaning of applicable securities laws) relating to business of  Landdrill International Inc. (the "Company") and the environment in  which it operates. Forward-looking statements are identified by words  such as "believe", "anticipate", "expect", "intend", "plan", "will",  "may" and other similar expressions. These statements are based on the  Company's expectations, estimates, forecasts and projections. Although  the Company believes the expectations expressed in such forward-looking  statements are based on reasonable assumptions, including, without  limitation that all terms of the contracts will be fulfilled in their  entirety, such statements are not guarantees of future performance and  actual results may differ materially from those in forward looking  statements. Factors that could cause the actual results to differ  materially from those in forward-looking statements include commodity  prices, availability of personnel, materials and equipment, actual  performance of equipment and processes relative to specifications and  expectations, unanticipated environmental impacts and continued  availability of capital and financing and general economic, market or  business conditions. These risks and uncertainties are discussed in the  Company's regulatory filings available at www.sedar.com. 

 There can be no assurance that forward-looking statements will prove to  be accurate as actual outcomes and results may differ materially from  those expressed in these forward-looking statements. Readers,  therefore, should not place undue reliance on any such forward-looking  statements. Further, a forward-looking statement speaks only as of the  date on which such statement is made. The Company undertakes no  obligation to publicly update any such statement or to reflect new  information or the occurrence of future events or circumstances, except  as required by law. 

 Neither the TSX Venture Exchange nor its Regulation Services Provider  (as that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this release. 

LANDDRILL INTERNATIONAL INC.


CONTACT:  Ronald J. GoguenPresident and Chief Executive OfficerLanddrill International Inc.Phone: [phone] 


    

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