Petrowest gets temporary relief from lenders

CALGARY -- Petrowest Corp. (TSX:PRW) is operating on borrowed time from its lenders.

The oilfield and forestry services company says it has until Jan.

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18 to provide a 2016 budget to get temporary relief from some of its debt commitments.

Most of the commitments relate to Petrowest's adjusted EBITDA, a measure of earnings that has fallen dramatically.

As of Sept. 30, the Calgary-based company had generated $10.62 million of adjusted EBITDA for the first nine months of 2015, down from $27.6 million in the comparable period of 2014.

One of Petrowest's covenants is to maintain a minimum of $20.7 million adjusted EBITDA for four consecutive quarters.

Petrowest's lenders have granted waivers on its debt covenants until Feb. 29, subject to the budget condition.

The company, which operates primarily in northern Alberta and northeastern British Columbia, provides a number of services such as construction, hauling, landfill operation and equipment rentals



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