Quattro Exploration and Production Ltd. announced that it has signed a binding term sheet with Advisco Capital Corp., for the provision by Advisco of a secured revolving credit facility and secured term loan in the aggregate amount of CAD 15,000,000. The proposed loan has been negotiated with Advisco for the purpose of satisfying all amounts outstanding to the company's senior secured lender, The Business Development Bank of Canada. The loan consists of secured revolving credit facility in an amount not to exceed 80% of the company's eligible accounts receivable, and 60% of the orderly liquidation value of eligible inventory on hand, and a secured equipment term loan in an amount not to exceed 65% of the orderly liquidation value machinery, equipment, and other tangible property. The proposed loan bears interest at the rate of 1% per month, plus a 2% fee on the aggregate amount of proposed loan, payable at closing. The proposed loan is for a one year term, with an option to renew for an additional one year term, provided the company is not in default, at a cost of 1.0% of the gross amount of the proposed loan then outstanding. the company also provided the report on its CCAA process, the activities to date in regards to Quattro's Court of Queen's Bench of Alberta approved proposed sale and investor solicitation process (SISP) that was initially launched on October 3, 2016. On January 5, 2017, the stay of proceedings under the CCAA for Quattro was extended to February 17, 2017. In connection with the stay, Quattro entered into a term sheet with its senior lender whereby the lender agreed to provide an additional $650,000 of debtor-in-possession financing to Quattro (the interim financing), bringing the total amount of debtor-in-possession financing under the CCAA to an aggregate $1,900,000 (the interim financing agreement). The additional debtor-in-possession financing was approved by the Court pursuant to the CCAA process. The term of the additional loan was due to expire on March 20, 2017. $440,000 had been advanced by the lender under the interim financing agreement to date. In the assessment of the lender and the monitor, the proposed loan and the additional efforts of the company to satisfy the BDC debt did not meet the conditions of the term sheet and, in accordance with the terms of the term sheet, BDC was entitled to reject the provision of the remaining interim financing and make an application to the Court upon 24 hours' notice to Quattro and the Monitor, for the appointment of a Receiver.