On January 30, 2024, Razor Energy Corp., including its subsidiaries, filed a Notice of Intention to Make a Proposal under Canada's Bankruptcy and Insolvency Act (BIA), appointing FTI Consulting Canada Inc. as the proposal trustee. McCarthy Tétrault LLP provided legal counsel to Razor Energy, while Blake, Cassels & Graydon LLP represented FTI Consulting Canada Inc.

The board's decision stemmed from an ongoing dispute with the Judy Creek Gas Plant operator, causing a significant production shutdown of approximately 1,100 boepd, and other business challenges. Under the Notice of Intention, Razor Energy sought to explore strategic alternatives, engaging Peters & Co. Limited to solicit bids for potential transactions, including property sales, refinancing, or restructuring financial obligations.

The Notice of Intention initiated an automatic stay of proceedings, protecting the corporation from creditor claims and enforcement actions. During this period, creditors could not amend agreements or demand accelerated payments due to insolvency. The initial stay period was 30 days, extendable by court order.

Razor Energy anticipated the suspension of its common shares trading on the TSX Venture Exchange (TSX-V) until compliance with listing requirements was achieved. The corporation acknowledged the uncertainty regarding the resumption of trading and potential transfer to the NEX Board if listing requirements were unmet.

Transaction value details were not disclosed.