Avila Energy continues restructuring via creditor deal

Mr. Donald Benson reports AVILA ENERGY CORPORATION ANNOUNCES UPDATE Avila Energy Corp. has entered into a memorandum of understanding agreement with its secured creditor, wherein Avila and or its designated nominee have agreed to purchase, by way of assignment, the debenture issued on July 14, 2024. Prior to completion of the assignment of the debenture, the purchaser will be extending the repayment date for the outstanding balance. "This is a major step in the restructuring of the company, as the it will give the company time to re-establish its production and get onto a sound footing," said Mr. Benson. Once the rights offering is concluded on May 22, 2026, the company intends to obtain a court date to have it is proposal to it is creditors approved. Thereafter, management will meet with Alberta energy regulator to determine their requirements, which the company intends to fulfill, with a further private placement offering. We seek Safe Harbor.