Additional Proxy Soliciting Materials - Non-management (definitive) (dfan14a)
20 Maggio 2014 - 7:55PM
Edgar (US Regulatory)
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No.)
Filed by the Registrant
£
Filed by a Party other than the Registrant
S
Check the appropriate box:
£
Preliminary Proxy Statement
£
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
£
Definitive Proxy Statement
£
Definitive Additional Materials
S
Soliciting Material Pursuant to §240.14a-12
(Name of Registrant as Specified In Its Charter)
Montclair Energy, LLC
W. Cobb Hazelrig
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
|
x
|
|
No fee required.
|
o
|
|
Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
|
|
|
|
|
(1)
|
Title of each class of securities to which transaction applies:
|
|
|
|
|
(2)
|
Aggregate number of securities to which transaction applies:
|
|
|
|
|
(3)
|
Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
|
|
|
|
|
(4)
|
Proposed maximum aggregate value of transaction:
|
|
|
|
|
(5)
|
Total fee paid:
|
|
|
|
o
|
|
Fee paid previously with preliminary materials.
|
o
|
|
Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
|
|
(1)
|
Amount Previously Paid:
|
|
(2)
|
Form, Schedule or Registration Statement No.:
|
|
(3)
|
Filing Party:
|
|
(4)
|
Date Filed:
|
|
|
|
Montclair
Energy Objects to Equal Energy's Extension of
the Acquisition Agreement with Petroflow
Birmingham, Alabama – May 20, 2014
Today, Montclair Energy, LLC ("Montclair") objected
to the extension the management of Equal Energy Ltd. (NYSE: EQU; TSX: EQU) ("Equal Energy") granted to Petroflow Energy
Corporation ("Petroflow"). W. Cobb (Chip) Hazelrig, principal at Montclair, criticized management’s decision stating:
"I fail to understand how the management of Equal Energy can continue to ignore what is in the best interests of its shareholders.
We are nonplussed that the management did not use the termination date of the transaction to redress many of the flaws in the
transaction that we have highlighted in the past. The only concession that Equal Energy extracted from Petroflow was the payment
of two dividends. In the interim, by agreeing to restrictions on its capital expenditures, delaying the payment of the second
quarter dividend and further extending the closing of the acquisition to as late as July 31, 2014, the company is stockpiling
cash solely for the benefit of Petroflow to help it finance the acquisition, to the detriment of the public shareholders. In Montclair's
proposal, we had contemplated distributing available cash to shareholders as part of our leveraged recapitalization proposal."
In the past, Montclair has criticized the transaction
for its continued lack of visibility on the financing, the lack of explanation for the delays in the transaction, and, most importantly,
the lack of meaningful opportunity to improve the terms of a potential alternative sale with another buyer in light of the highly
restrictive non-solicitation clause included in the agreement. Furthermore, Mr. Hazelrig pointed out that while Equal Energy's
May 8, 2014 filing of its first quarter results stated that Petroflow had received debt financing commitments, Montclair remains
dismayed that the severely limited disclosure fails to describe the amount of the financing commitments or any of the conditions
to the debt financing commitments that, if not satisfied, could jeopardize completion of the acquisition. Moreover, none of the
Company’s or Petroflow’s statements address the availability of equity financing, if any, that may be required to
complete the acquisition.
"Our greatest disappointment is that the management
of Equal Energy did not use Petroflow's failure to close by the May 1, 2014 termination date as an opportunity to renegotiate the
price so that it more accurately reflected the dramatic improvement in output prices and reserve valuations that have occurred
since the deal was negotiated last December," said Mr. Hazelrig. "When a transaction is about to terminate, after so
much effort, I would have viewed that as an opportunity for the seller, in this case Equal Energy, to renegotiate price to reflect
the dramatically improved circumstances that have occurred in the past nine months. This is just the latest in a long series of
mistakes made by Equal Energy's management and board of directors."
Equal Energy's management has failed to respond to Montclair's
filing of April 29, 2014. In announcing their extension, they noted that their advisors had opined that the sale to Petroflow was
superior to a leveraged recapitalization. However, they neglected to state whether or not that opinion had been expressed during
last year's strategic review and whether or not the analysis was updated prior to entering into the extension. In describing the
circumstances, Mr. Hazelrig noted that "Montclair provided a full and complete analysis of the benefits of a leveraged recapitalization
to Equal Energy's shareholders. Even though Equal Energy's management has failed to identify any fault with our analysis, it has
summarily dismissed the proposal without disclosing any basis for its conclusion to deprive Equal Energy's shareholders of a more
valuable avenue to follow."
Montclair continues to believe a leveraged recapitalization
is the best mechanism available to maximize the value for Equal Energy's shareholders and intends to vote against the Petroflow
acquisition and to urge Equal Energy's management to pursue superior alternatives.
ADDITIONAL INFORMATION
Montclair is in active conversations
with potential nominees who would be willing to stand for election as a slate of independent directors that would exercise their
independent judgement and duties as directors of Equal Energy and consider superior mechanisms for maximizing shareholder value.
Montclair expects to file a proxy statement with the U.S. Securities and Exchange Commission ("SEC")
in respect of such nominees.
Any definitive proxy statement will also
be mailed to stockholders of Equal Energy. Additional information regarding the interests of the participants in the proxy solicitation
and a description of their direct and indirect interests, by security holdings or otherwise, would then also be included in any
proxy statement and other relevant materials to be filed with the SEC when they become available.
INVESTORS AND SECURITY HOLDERS
OF EQUAL ENERGY ARE URGED TO READ THESE AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY IF AND WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT ANY PROPOSED NOMINEES
. Investors and security holders will
be able to obtain free copies of these documents (if and when available) and other documents filed with the SEC by Montclair through
the web site maintained by the SEC at http://www.sec.gov.
CERTAIN INFORMATION REGARDING PARTICIPANTS
Montclair, W. Cobb (Chip) Hazelrig and
Frederick G. Wedell may be deemed to be participants in any proxy solicitations that may be made by Montclair. Mr. Hazelrig and
Mr. Wedell own 100% of the equity interests in Montclair. Collectively Mr. Hazelrig and Mr. Wedell are the beneficial owners of
less than 5% of the outstanding common shares of Equal Energy.
For further information please contact:
W. Cobb Hazelrig
Montclair Energy
(205) 803-0034
Grafico Azioni Equal Energy Ltd. (NYSE:EQU)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Equal Energy Ltd. (NYSE:EQU)
Storico
Da Giu 2023 a Giu 2024