March 5, 2009 / 9:09 PM / 11 years ago

UPDATE 1-Canadian Superior files for bankruptcy protection

* Files for protection from creditors

* TSX reviews listing

* Still looking to sell stake in Trinidad asset

* Shares close 41 percent lower (Recasts to add detail and closing share price; changes dateline from TORONTO)

CALGARY, Alberta , March 5 (Reuters) - Canadian Superior Energy Inc SNG.TO sought court protection from its creditors on Thursday, sending its shares down by 41 percent.

The Toronto Stock Exchange said it was mulling the delisting shares of the junior oil producer.

Canadian Superior stock fell 20 Canadian cents, or 41 percent, to 29 Canadian cents, after earlier touching 23.5 Canadian cents. Volume was 1.28 million shares, nearly 10 times the average over the past three months.

The company said it has filed an application to a Calgary, Alberta, court under the Companies’ Creditors Arrangement Act, seeking to keep its creditors at bay while it restructures its operations.

Canadian Superior, which could not be immediately reached for comment, said in a release it would provide further details after a court order is granted.

However the company still plans to find a buyer for its stake in a promising gas discovery near Trinidad, a property it shares with BG Group Plc BG.L and another small Canadian firm.

BG in February sought to have a receiver appointed for Canadian Superior’s interest in the Intrepid Block offshore Trinidad.

Canadian Superior said selling all or part of its Trinidad stake might allow it to restructure its operations and reemerge from CCAA.

The company also faced a demand that it repay what it owes under a C$37.5 million credit facility with Canadian Western Bank (CWB.TO). The bank agreed on Monday to hold off on it repayment demand until March 12.

The Toronto Stock Exchange said it is reviewing whether Canadian Superior still meets its listing requirements. It said it will expedite the process but did not say when the review will be complete. ($1=$1.29 Canadian) (Reporting by Scott Haggett and John McCrank; editing by Janet Guttsman)

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