Avila Energy announced today that Insight Acquisition has sent a notice of default, and that it intends to terminate the business combination agreement signed in April — if the alleged default is not cured by July 26.
“Despite the successful negotiation and settlement executed and announced on June 26, between Avila Energy Corporation and MTT, Insight Acquisition Corp. has provided notice that it is not satisfied that Avila has cured its concerns and has chosen to put Avila on notice that it intends to terminate the business combination agreement (BCA),” Avila said in a press release.
“Avila strongly disagrees with Insight’s characterization of various events described by Insight with its notice of default and Insight’s position that Avila has breached the BCA.” said Leonard B. Van Betuw President & CEO. “Despite many challenges that are associated with a transaction of this nature Avila has kept Insight informed as it worked through them over the past few weeks and has now fundamentally dealt with the issues raised in the notice of default. Avila is confident any outstanding issues Insight has raised can be satisfactorily resolved by the cure date.”
Avila said following internal discussions it feels that Insight’s decision is short sighted and does not change the company’s focus on its business plan and core businesses, “which are no different than what were presented to Insight at the time of the execution of the BCA,” the company said.
Avila is an established producer, explorer, and developer of oil and gas in Western Canada. At deal announcement less than three months ago, the transaction with Insight was valued at $192.6 million. Read more.
