Delphi Energy Corp. announces approval of interim financing and extension of stay period to October 9, 2020

CALGARY, Alberta – Delphi Energy Corp. (“Delphi” or the “Company”) announces that it has obtained an order from the Court of Queen’s Bench of Alberta (the “Court”) granted in Delphi’s proceedings under the Companies’ Creditors Arrangement Act (the “CCAA”): (i) extending the stay period to October 9, 2020, (ii) approving interim financing arrangements intended to fund the Company’s operations and expenses during the CCAA proceedings, and (iii) approving a claims process with a claims bar date of July 10, 2020.

Interim financing arrangements will be provided by ATB Financial pursuant to an interim letter of credit facility, in an aggregate amount not to exceed $6.25 million, and by Luminus Energy IE Designated Activity Company (“Luminus Energy”), an affiliate of a pooled investment vehicle of Luminus Management, LLC (“Luminus”), pursuant to an interim loan facility, in an aggregate amount not to exceed $13.5 million. ATB Financial and Luminus Energy have respectively been granted third and fourth ranking super-priority charges over the Company’s and its subsidiaries’ assets and property in connection with such facilities. Luminus is a related party of Delphi which, through one or more of its pooled investment vehicles or affiliates thereof, holds 14,065,138 common shares, representing approximately 57% of Delphi’s outstanding common shares, and approximately $58.7 million principal amount of Delphi’s second lien senior secured notes, representing approximately 49% of the outstanding second lien senior secured notes.

The extension of the stay period to October 9, 2020 is expected to allow the Company time to pursue restructuring efforts for the benefit of all stakeholders. The Company currently intends to work toward developing a plan of compromise or arrangement under the CCAA to be voted on by its creditors.

Update on Continuous Disclosure Filings

As previously announced by Delphi, the Company is relying on exemptive relief granted by Canadian securities regulatory authorities that allows it to delay the filing of its interim financial report for the interim period ended March 31, 2020 as required by section 4.4 of National Instrument 51-102 and related management’s discussion & analysis as required by subsection 5.1(2) of National Instrument 51-102 (collectively, the “Q1 Filings”) and estimates that the Q1 Filings will be available for filing on or before June 29, 2020. Until such time as these filings are made, Delphi’s management and other insiders are subject to a trading blackout that reflects the principles contained in section 9 of National Policy 11-207 – Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions. Except as previously announced by Delphi in connection with the CCAA proceedings, there have been no material business developments since the date of Delphi’s audited consolidated financial statements for the years ended December 31, 2019 and 2018 that were filed on March 12, 2020, a copy of which is available on SEDAR at www.sedar.com.

Additional Information

Delphi and certain of its subsidiaries were granted an initial order and protection under the CCAA on April 14, 2020. PricewaterhouseCoopers Inc. has been appointed by the Court as monitor in the CCAA proceedings. Materials publicly filed in the CCAA proceedings, including copies of the initial order of the Court, are available on the monitor’s website at http://www.pwc.com/ca/delphi. Delphi will continue to provide updates regarding its restructuring as developments warrant.

About Delphi Energy Corp.

Delphi Energy Corp. is an industry-leading producer of liquids-rich natural gas. The Company has achieved top decile results through the development of our high quality Montney property, uniquely positioned in the Deep Basin of Bigstone, in northwest Alberta. Delphi continues to outperform key industry players by improving operational efficiencies and growing our dominant Bigstone land position in this world-class play. Delphi is headquartered in Calgary, Alberta.