FairWest Energy Corporation has obtained an Order on January 11, 2013 from the Court of Queen's Bench of Alberta (the "Court") extending the stay of proceedings granting relief to FairWest under the Companies' Creditors Arrangement Act ("CCAA") to February 11, 2013.

On January 3, 2013, the Company fulfilled the conditions precedent in the debtor-in-possession financing agreement (the "DIP Financing") with Supreme Group Inc. (the "DIP Lender") approved by the Court in the Initial Order granted December 12, 2012 (the "Initial Order"). The DIP Financing provides the Compnay with financing in the maximum amount of $700,000 during the CCAA proceedings. In accordance with the Initial Order granted by the Court on December 12, 2012, the DIP Financing ranks in priority to existing security interests of the Company's creditors.

The terms and conditions of a restructuring plan have not yet been determined.

Tags: FairWest Energy Corporation