August 14th, 2018

City writes off $410K owed by bankrupt company

By Gillian Slade on February 8, 2018.

Medicine Hat News

Council voted to write off $410,000 incurred by a company the city was in partnership with that went bankrupt.

Spyglass was in partnership with the city primarily with natural gas assets in the Atlee area until November 2015, conducting abandonment and site reclamation activities of several associated wells.

The city is an unsecured creditor and did not receive proceeds from the receivership process, and is unlikely to receive any from the bankruptcy proceedings.

A city document says provision was made for “doubtful accounts” in its December 2015 financial statements.

Spyglass’s 50 per cent ownership in the majority of the Atlee natural gas fields was sold to Sandling Energy Ltd in May 2016 during the receivership process.

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