01/20/2015 08:44 EST | Updated 03/22/2015 05:59 EDT

Calmena Energy says key lender seeking to put drilling company into bankruptcy

CALGARY - Calmena Energy Services Inc. (TSX:CEZ) said Tuesday its senior lender has applied to put the drilling company into bankruptcy.

The company has been in breach of its debt covenants for several months but was given until Jan. 15 to make its payments.

Calmena said it received formal notice on Monday that its secured lenders would seek to seize Calmena's assets through the Bankruptcy and Insolvency Act if it's not paid within 10 days.

The Calgary-based business owes about $16.6 million under its senior credit facilities which are secured by all of its assets in Canada, the United States and Mexico.

Calmena said Monday all five members of its board of directors tendered their resignations, effective at the close of business Jan. 15.

Trading in Calmena shares on the Toronto Stock Exchange have been suspended from trading and the TSX is reviewing the stock's eligibility for listing. They last traded at half a cent on Friday, giving the company a market value of about $1.5 million.