The Calgary, Alberta-based oil explorer said it had obtained a court order for protection under the Companies' Creditors Arrangement Act, which will stay proceedings against it in Canada and allow it to continue operating.
Oilexco's shares plunged 95 percent over the second half of last year as the company ran into funding trouble.
It placed its North Sea operations, its primary assets, under British bankruptcy protection last month after lenders balked at providing credit to the firm.
Oilexco said on Wednesday a lending group led by Royal Bank of Scotland has demanded it repay immediately all borrowed amounts under credit facilities.
The company's shares fell 4.5 Canadian cents to close at 15 Canadian cents on the Toronto Stock Exchange on Thursday.
($1=$1.23 Canadian)
(Reporting by Cameron French; editing by Peter Galloway) Keywords: OILEXCO/CREDITORS (cameron.french@thomsonreuters.com; 416-941-8199: Reuters Messaging: cameron.french.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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