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Lighstream seeks creditor protection after failure to reach settlement

An oil pump jack pumps oil in a field near Calgary, Alberta, July 21, 2014.

TODD KOROL

Lightstream Resources Ltd. is seeking creditor protection after it failed to reach a settlement with unsecured bondholders opposed to a restructuring proposal aimed at cutting the oil and gas company's debt.

Calgary-based Lightstream late on Monday said it would seek a sale of part or all of the company under the court-supervised Companies Creditors Arrangement Act.

Lightstream said it had been unable to reach an agreement with certain holders of the company's unsecured notes who had opposed a debt-reduction plan granting higher-ranked bondholders the majority of shares in a restructured company.

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The company is the latest energy producer to succumb to weak oil prices and mounting debt woes. Last month, Twin Butte Energy Ltd. was pushed into receivership by its lenders after bondholders rejected a proposed takeover offer.

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