Law360 Canada (January 18, 2021, 9:19 AM EST) -- Appeal by Wilks Brothers from the approval of a plan of arrangement put forward by the respondent Calfrac Entities under the Canada Business Corporations Act. The Plan was a recapitalization transaction designed to reduce Calfrac’s outstanding indebtedness and annual cash interest payments and improve its liquidity to provide the sustainable capital structure required for Calfrac to continue its business operations. Under the Plan, some of Calfrac’s senior unsecured noteholders would provide financing to Calfrac through a $60-million loan facility. The proceeds would be used to reduce Calfrac’s debt under its first lien credit agreement. The transaction reduced Calfrac’s outstanding indebtedness by $561 million and its annual cash interest payments by $53 million. It improved Calfrac’s liquidity by $41 million. Legal and financial advisers considered and endorsed the arrangement. The Plan was supported by all stakeholders except the appellant. The appellant was a competitor, creditor and 20 per cent shareholder of Calfrac. It declined to participate in the recapitalization negotiations. It purchased over 50 per cent of second lien notes to try to block the recapitalization. The chambers judge found the Plan was fair and reasonable....