Tervita Agrees to Sell Production Services Unit to High Arcticby
$32.8 million deal includes 68 service rigs, 300 personnel
Tervita has struggled with cash flow amid weak oil markets
The unit includes a fleet of 68 marketed service rigs and employs 300 people including management, Calgary-based Tervita said today in a statement. The deal is expected to close around Aug. 31.
Tervita, which provides waste management services to the oil industry, plans “to focus on our core areas, which we believe position us better for profitable growth,” Chief Executive Officer Chris Synek said in the statement.
Closely held Tervita has struggled with its finances as energy producers have slashed drilling budgets amid the two-year oil rout. Cash flow has been under pressure, and the company missed an Aug. 15 interest payment on its 10.875 percent unsecured notes maturing in 2018. Tervita is using a 30-day grace period to work with advisers on restructuring its debt.