Terra Energy Corp., a Calgary-based energy producer, has shut down following an act from the bank seeking to recall a $15.9-million loan.
Under the federal Bankruptcy and Insolvency Act, Canadian Western Bank flexed its right to recall the loan plus interest, costs and fees. The company has until Monday to repay.
This crippling blow comes as the company was already struggling following plans to switch focus from natural gas to oil, prior to the energy price collapse.
Terra has laid off all non-executive employees and its directors and officers have resigned.
(Written by: N. Reitmayer; Original information source: Calgary Herald http://www.calgaryherald.com/business/small+producer+terra+energy+shuts+down+after+bank+calls+loan/11799782/story.html)