Fallon Energy Inc.
- Proceeding
- Receivership (court-appointed)section 243(1) of the BIA, and sections 13(2) of the Judicature Act, RSA 2000, and 65(7) of the Personal Property Security Act, RSA 2000
- File
- 2601-10983
- Industry
- Energy · Oil & gas production
Fallon Energy Inc. filed a Notice of Intention to make a proposal under subsection 50.4(1) of the Bankruptcy and Insolvency Act on April 24, 2026, with Grant Thornton Limited named Licensed Insolvency Trustee. The list of creditors filed with the notice names the Ministry of Energy and Resources-Sask at $1,279,188.72 and 3994856 Canada Inc. at $4,280,000.00, alongside numerous other trade, landowner and municipal creditors, including R.M. of Wilton at $331,243.44 and Receiver General - Winnipeg Tax Centre at $90,061.54. On July 2, 2026, the Court of King's Bench of Alberta pronounced a receivership order on the application of 3994856 Canada Inc., under section 243(1) of the BIA, section 13(2) of Alberta's Judicature Act and section 65(7) of Alberta's Personal Property Security Act, appointing Grant Thornton Limited receiver. Justice B. B. Johnston and Justice Lema have presided over the matter, which remains active in Alberta.
The court granted a reverse vesting order in favour of 3994856 Canada Inc.
Source: Transaction Approval and Reverse Vesting Order filed July 6, 2026
The Court of King's Bench of Alberta pronounced a receivership order on July 2, 2026, appointing Grant Thornton Limited receiver on the application of 3994856 Canada Inc.
The officer filed report no. Third Report of the Proposal Trustee. Fallon has no prospect of making a proposal and its interim financing LOIs were withdrawn; absent a transaction with 399 via receivership and reverse vesting order, it would be deemed bankrupt on July 9, 2026 with its assets (including 170 licensed wells) likely disclaimed for lack of funds.
Creditor Package - Notice of Intention to Make a Proposal (April 29, 2026) — Notice to creditors
Fallon Energy Inc. filed a Notice of Intention to make a proposal under subsection 50.4(1) of the Bankruptcy and Insolvency Act, dated April 24, 2026.
Source: Certificate of Filing Notice of Intention from the OSB - Estate No. 25-3364376
Case update
Fallon Energy: no surplus for the creditor trust
Fallon's reverse vesting deal closed on August 25 at a $1.00 price, and the $443,894 left in the estate would go to professionals and CRA's deemed trust, short of the professionals' invoices, receiver Grant Thornton Limited reports. On November 3 it asks to close the creditor trust without a bankruptcy and to be discharged.
Outcome brief
Fallon Energy: garnished, the oil money was still Fallon's
Two Saskatchewan municipalities served tax notices on Fallon's oil buyers; in 2026 ABKB 443, Justice Lema held the money remained Fallon's and the NOI stayed the garnishments. On July 2, 2026, the secured lender won a reverse vesting order sending excluded claims to a creditor trust, with $250,000 reserved for four municipalities.
Debtor
Fallon Energy Inc.
Applicant
3994856 Canada Inc.
Receiver
Doane Grant Thornton
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Lema | Court of King's Bench of Alberta | 3 orders, May 2026 – Jul 2026 | 19 cases on record |
| Justice Johnston | Court of King's Bench of Alberta | 2 orders, Jul 2026 | 55 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| ReceiverDoane Grant Thornton | McDougall Gauley LLP | 28 Oct 2026 | Factum · 28 Oct 2026 |
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | Administrative Professionals (Proposal Trustee, its counsel, and counsel to the Debtor) - Administration ChargeFirst-ranking court-ordered charge on all Property (including the MLT Funds), maximum $215,498.01; ranks ahead of all security interests, trusts, deemed trusts and encumbrances, subject to BIA ss. 14.06(7), 81.4(4), 81.6(2) — The amount is the maximum of the charge (a ceiling), not an outstanding balance; increased from $150,000 (order of May 19, 2026) and restated by the July 2, 2026 order. Court-ordered priority charge, not a pre-filing secured debt. — debtor: Fallon Energy Inc. · as of 2 Jul 2026 | $215K | Receiver's First and Final Report to the Court filed October 28, 2026 |
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured |
171 more claims in 2 classes The stack holds Secured and Unsecured claims.
Every creditor and every amount, drawn to scale.
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See all plansThis proceeding was commenced by a secured creditor. The record does not include the debtor’s own statement of assets and liabilities — that ceiling is the record’s, not this page’s.
Sale closed — The Transaction (purchase of all shares of Fallon by 399's nominee under the Amended Subscription Agreement, approved by the RVO of July 2, 2026) closed on August 25, 2026.Receiver's First and Final Report to the Court filed October 28, 2026 · 26 Oct 2026
| Purchaser | Price | Status | Source |
|---|---|---|---|
| 3994856 Canada Inc.the Purchased Shares · share sale · nominee/assignee: Marlin Transport Ltd., as 399's nominee · ResidualCo: Fallon Residual Asset Trust | not stated | Closed25 Aug 2026 | Receiver's First and Final Report to the Court… |
Cash on hand
$465K
As at 30 Jun 2026Trustee's Third Report to Court filed July 2, 2026
Professional fees
As at
1 more reported figure
Each one as the filing states it, with its source.
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See all plans| Date | Document | File |
|---|---|---|
Brief of Law of the Receiver, Grant Thornton Limited filed October 28, 2026
| PDF · Subscribers | |
Receiver's First and Final Report to the Court filed October 28, 2026
| PDF · Subscribers | |
| Certificate of Filing dated July 10, 2026 | PDF · Subscribers | |
Notice and Statement of the Receiver dated July 8, 2026
| PDF · Subscribers | |
Consent Receivership Order filed July 6, 2026
| PDF · Subscribers | |
Transaction Approval and Reverse Vesting Order filed July 6, 2026
| PDF · Subscribers | |
Administration Charge Order filed July 2, 2026
| PDF · Subscribers | |
Trustee's Third Report to Court filed July 2, 2026
| PDF · Subscribers | |
Trustee's Second Report to Court filed June 18, 2026
| PDF · Subscribers | |
Endorsement of Justice Lema filed June 11, 2026
| PDF · Subscribers | |
Order (Stay Extension) filed May 25, 2026
| PDF · Subscribers | |
| Affidavit of Jill Parton sworn May 15, 2026 | PDF · Subscribers | |
| Affidavit of Joanne Loy sworn May 15, 2026 | PDF · Subscribers | |
| Application (RM of Wilton) dated May 15, 2026 | PDF · Subscribers | |
| Bench Brief submitted May 15, 2026 | PDF · Subscribers | |
| Trustee's Report to Court dated May 14, 2026 | PDF · Subscribers | |
| Affidavit of Candace Nutbrown sworn May 13, 2026 | PDF · Subscribers | |
| Application (Cassels) dated May 13, 2026 | PDF · Subscribers | |
Creditor Package - Notice of Intention to Make a Proposal (April 29, 2026)
| PDF · Subscribers | |
Certificate of Filing Notice of Intention from the OSB - Estate No. 25-3364376
| PDF · Subscribers | |
Filing titles and dates are public, and so is each filing's own page. The figures read from them are for subscribers.
CiteProceedings., “Fallon Energy Inc.” (Receivership (court-appointed)), Court of King's Bench of Alberta. Retrieved 4 November 2026, https://proceedings.ca/case/fallon-energy-inc