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Cash-strapped Twin Butte Energy Ltd. has agreed to be acquired by Reignwood Resources Holding Pte. Ltd. for about $21.3-million plus debt, ending uncertainty over the company's future as it sought to stave off default.

Calgary-based Twin Butte in a statement on Friday said it had struck a deal to be acquired by Hong Kong-based Reignwood for 6 cents per share. Including debt, the total transaction value is $256-million.

The deal brings to an end laboured negotiations between Twin Butte and its lenders. Like others, the company had struggled with debt as weak oil prices crimped its cash flow. In recent weeks, it had won successive one-day extensions to its credit facilities. Its financial advisers had sought a buyer over a period of six months.

The acquisition is supported by Twin Butte's board and is expected to close by mid-August, pending clearance under the Investment Canada Act and other approvals. It is also subject to a mutual $5-million break fee.

Peters & Co. Ltd. and National Bank Financial Inc. acted for Twin Butte, with Burnett Duckworth and Palmer LLP acting as legal advisers.

Deloitte Corporate Finance Inc. and Osler, Hoskin and Harcourt LLP acted for Reignwood, a partnership between Reignwood Group and Horizon Holding Group. Reignwood describes itself as a global conglomerate with interests in real estate, construction and aviation.

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