Ivanhoe Energy executive chairman Carlos Cabrera. Image courtesy of ivanhoeenergycom/Youtube.

Canadian oil sands developer Ivanhoe Energy declared bankruptcy Tuesday after a failed restructuring attempt.

The company said that “despite considerable efforts” it could not reach a viable restructuring plan with its major creditors.

Ivanhoe received a default notice after missing a $2.1 million interest payment on a $73.3 million debt note in February, the Calgary Herald said.

The default notice prompted the company to halt trading of its stock on the Toronto Stock Exchange that month and to file for bankruptcy protection.

The company was granted six months of protection to restructure its business but could not reach an agreement  with its lenders and court appointed trustee, Ernst & Young.

Vancouver-based Ivanhoe Energy has not commented on the matter.

The company has been hit hard by a double whammy of low oil prices and a major project suspension.

Last year, Ivanhoe was forced to stop work on a $1.3 billion oil sands project after the Alberta Energy Regulator identified concerns about the integrity of the site’s cap rock.

Ivanhoe founder Robert Friedland gave Ivanhoe Energy a $2.37 million bridge loan in February in a bid to save the company, the Wall Street Journal said.


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