Area helium firm files for court protection

By Medicine Hat News on January 22, 2025.

@MedicineHatNews

Royal Helium has entered court-creditor protection as its executives say they are determining how best to keep the company operating and repair a production facility that was broken into last month.

That comes after a major restructuring of senior personnel in the fall as well as a major theft and equipment loss at the company’s Steveville production facility, north of Brooks.

“The company has been actively pursuing an out-of-court restructuring solution (including)… initiatives to raise additional capital to meet working capital needs, creditor obligations and fund engineering requirements to appropriately recommission the Steveville Helium facility,” a release from the company stated on Monday.

The court action, they said, will allow the company to “obtain a going concern solution for its operations and maximize the value of the company’s assets for the benefits of its stakeholders.”

The company has filed to notice that it intends to make a proposal under the Bankruptcy and Insolvency Act. A trustee with the firm of Doane Grant Thorton will be assigned.

Royal Helium owns substantial land rights in Saskatchewan to explore and produce the rare element from underground deposits. It acquired Imperial Helium and its plans at Steveville, where it commissioned production facility in late 2023.

Last month, the RCMP reported that they were investigating a Christmas Eve theft at the plant during which several large, highly specialized pieces of equipment were removed through a large hole cut in the facility’s wall.

In September, Saskatoon-based Royal announced the resignation and replacement of CEO Ryan Davidson, and this week, the company stated that cheif operating officer Shayne Neigum had also left for “other opportunities.”

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