Western Resources Provides Update on CCAA Proceedings and TSX Listing Review

Western Resources Corp. (TSX: WRX) announced that the Supreme Court of British Columbia has granted an Amended and Restated Initial Order under the Companies' Creditors Arrangement Act (CCAA) for its subsidiaries, Western Potash Corp. and affiliates. The order, issued on August 31, 2026, extends the stay of proceedings until December 18, 2026. FTI Consulting Canada Inc. continues to serve as the Court-appointed Monitor.

The Court also approved an increase in interim financing of up to US$6 million, with funds designated to support ongoing operations and the restructuring process. Additionally, the Court authorized a Sale and Investment Solicitation Process (SISP) to evaluate strategic transactions involving the Debtors and the Milestone Project. Permitted alternatives under the SISP include sale, strategic investment, restructuring, recapitalization, or refinancing. The process will begin with an initial non-binding proposal stage, followed by a binding bid process for qualified participants, with FTI Consulting overseeing the procedure.

The Monitor filed a supplemental report addressing the SISP, interim financing requirements, and the restructuring framework. Regarding the SISP, the company stated: "The Company views the SISP as an important step in advancing its restructuring efforts and providing a competitive process through which potential investors and strategic parties can evaluate opportunities involving the Debtors and the Milestone Project."

In parallel, the Toronto Stock Exchange (TSX) has scheduled a meeting for September 8, 2026, to review the continued listing eligibility of Western Resources' common shares. The TSX announced on August 25, 2026, that the shares were under Expedited Review for continued listing eligibility. The company requested reconsideration of potential delisting, arguing that the CCAA process should progress before a final determination is made.

"The Company believes that the Court-supervised process should be permitted to progress sufficiently to allow the TSX to assess its potential impact on the Company and its stakeholders before a final determination is made regarding its listing," the company said.

Trading in Western Resources' common shares remains suspended under a Cease Trade Order issued by the BC Securities Commission on March 4, 2025. The company provided no assurance that the shares will remain listed.