Alberta government takes major stake in Precision Drilling

Opportunity to restructure debt with provincial money smells like bailout

Who’d have thought it, in Alberta of all places, that bastion of the free market system? But there it is: AIMCo, an investment wing of the Alberta government, is to take a 15 per cent stake in Calgary-based Precision Drilling Trust, an oilfield services company, advancing it $380 million in financing that will give the outfit a chance to restructure its debt. “We expect the financing transactions to put the Trust back on path to return to an investment grade credit over the next few years, allow Precision to weather current market challenges and pave the way for future opportunities,” said president and CEO Kevin Neveu. Must be nice.

The Canadian Press

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