Alberta · CCAA
Affidavit of Paul Procyk - Part 1
Affidavit · 23 October 2026
AI summary
A plain-English summary drawn only from this filing: what it is, why it matters, and the parties, amounts and dates it turns on.
What we verified from this filing8 verified
- financial positionnote: Total liabilities not stated as a single figure on these pages. Components stated: secured principal debt C$79,291,000 (first lien C$67,754,000 + second lien C$11,537,000), PPRC preferred shares C$27,890,000, Unsecured Liabilities approx. C$136,104,000. Asset components: property and equipment C$95,827,000, E&E assets C$3,456,000, cash C$2,071,000, restricted deposit C$4,112,000, accounts receivable C$6,485,000, prepaid and other C$4,855,000. Company notes material uncertainty as to going concern; no impairment indicators identified. · page: 4 · as at: 2026-06-30 · basis: PPRI Condensed Interim Consolidated Financial Statements (unaudited) as at June 30, 2026, book value, as cited by affiant · scope: Consolidated; Prairie Provident Resources Inc. and subsidiaries including Prairie Provident Resources Canada Ltd. · currency: CAD · total assets: 117456000
- secured creditorsnote: Related party: affiliate of Prudential Senior and of PCEP, holder of approx. 80.1% of PPRI equity. Principal debt figure includes capitalized and accrued PIK interest of C$5,302,000 (C$1,713,000 accrued Jan 1–Jun 30, 2026). Carrying amount C$5,257,000. A deferred compensation fee at a target 1.8x multiple (capped at 45% IRR) is payable on settlement and is not reflected in the principal figure. Affidavit calls it 'junior debt'; the MD&A also calls it second lien. · page: 4 · as of: 2026-06-30 · amount: 11537000 · debtor: Prairie Provident Resources Inc. · creditor: Prudential Capital Energy Partners, L.P. / Prudential Capital Energy Partners Management Fund, L.P. (Subordinate Lender) – Second Lien Notes · currency: CAD · security: Second lien notes under Second Lien NPA dated March 30, 2023 (original US$3,640,500; additional notes Sep-24 and Jun-25)
- secured creditorsnote: Affiant's estimate of aggregate owed, 'assuming interest accrual to 10/27/26 filing date', using FX 0.70 USD/CAD and excluding A&M. The breakdown table at p. 8 is an image and was not legible in the text. For comparison, MD&A/FS principal of the First Lien Loan was C$67,754,000 at 2026-06-30 (incl. C$1.5M Sep-24 amendment fee; carrying amount C$57,490,000). Debtors in breach of covenants (EBITDAX, leverage, minimum production); debt classified current. · page: 4 · as of: 2026-10-27 · amount: 71264618 · debtor: Prairie Provident Resources Inc. (primary obligor); Prairie Provident Resources Canada Ltd. (guarantor) · creditor: Prudential Senior (The Prudential Insurance Company of America and Prudential Legacy Insurance Company of New Jersey) – first lien / Senior NPA · currency: CAD · security: Demand Debenture and Negative Pledge Agreements from each of PPRI and PPRC over all assets; registered in Alberta PPR and against Crown mineral leases and freehold mineral interests. MD&A describes the facility as US$65M senior secured revolving notes secured by a US$200M debenture (facility limit / debenture ceiling, not balances).
- unsecured creditorsnote: MD&A liquidity table separately shows lease liabilities of C$238,000 in its cash flow maturity table. · page: 9 · as of: 2026-06-30 · basis: PPRI Financial Statements as at June 30, 2026 (unaudited), representing contractual future cash flows · amount: 476000 · debtor: Prairie Provident Resources Inc. (consolidated) · creditor: Lease liabilities (current and non-current) · currency: CAD
- unsecured creditorsnote: Regulatory/environmental obligations (AER), not a trade debt. Estimated undiscounted and uninflated future liability approx. C$111,700,000. Current portion C$4,646,000. AER 2026 mandatory closure spend quota possibly approx. C$4,500,000 pending variance request; not determined. · page: 9 · as of: 2026-06-30 · basis: PPRI Financial Statements note 7; estimated future remediation, abandonment and reclamation obligations · amount: 68309000 · debtor: Prairie Provident Resources Inc. (consolidated) · creditor: Decommissioning liabilities (current and non-current) · currency: CAD
- unsecured creditorsnote: Composition not described on these pages. Affiant states total Unsecured Liabilities 'exceeded approximately CAD $136,104,000'. · page: 9 · as of: 2026-06-30 · basis: PPRI Financial Statements as at June 30, 2026 (unaudited), as characterized by affiant as unsecured · amount: 12376000 · debtor: Prairie Provident Resources Inc. (consolidated) · creditor: Other liabilities (current and non-current) · currency: CAD
- unsecured creditorsnote: Aggregate; no individual creditors named on these pages. · page: 9 · as of: 2026-06-30 · basis: PPRI Financial Statements as at June 30, 2026 (unaudited), as characterized by affiant as unsecured · amount: 11552000 · debtor: Prairie Provident Resources Inc. (consolidated) · creditor: Accounts payable and accrued liabilities · currency: CAD
- unsecured creditorsnote: Related party (affiliate of PCEP). 8% annual yield; senior to other PPRC equity; redeemable/retractable on or after March 31, 2031; on retraction becomes unsecured, subordinated debt. MD&A cash-flow table shows preferred share liability of C$46,902,000 (>5 years). Also tied to Preferred Share Financing Warrants. Equity-like instrument rather than ordinary unsecured debt. · page: 12 · as of: 2026-06-30 · basis: Preferred shares classified as a liability (amortized cost); aggregate principal amount per MD&A and affidavit · amount: 27890000 · debtor: Prairie Provident Resources Canada Ltd. · creditor: PPR Canadian Pref Holdco, LLC (holder of PPRC Class A Preferred Shares) · currency: CAD