CONPOREC : Conporec Requests Procedures with Respect of the Companies Creditors Arrangement Act
PRESS RELEASE TSX-V : CNX Alternext : ALCNX
Conporec Requests Procedures with Respect of the Companies' Creditors Arrangement Act
Sorel-Tracy, 2008, August 11th - Conporec Inc. (Conporec or the Company), announces today that the Company requested and obtained an initial ordinance from the Court under the terms of the Companies' Creditors Arrangement Act (CCAA). Until this initial 30 days period or until any other delay decided by the Court, this ordinance aim the Canadian activities of Conporec but do not affect its subsidiary companies Conporec SAS (France) and Conporec PTY (Australia).
The Board of Directors of Conporec, of which all the members remain in position, estimates that obtaining such an ordinance and the possible deposit of a Plan of Arrangement to the creditors are the only solutions to regain a viable financial health. Ernst&Young has been appointed as controller. In addition to the CCAA statutory responsibilities, Ernst&Young will also assist the management of Conporec to develop a Plan of Arrangement that could be acceptable for the creditors and to define the financial restructuring plan of the Company.
In addition, Conporec received notification from Hera Holdings SA about their intention not to pursue the contemplated private placement under the disclosed terms and conditions and for which the closing date was planned July 31st 2008. Conporec and Hera Holdings SA currently study other ways to team up in the development of projects. Consequently, Conporec definitively withdraws its intention to conclude a private placement according to the beforehand disclosed terms.
Consequently of the review of its operations under the terms of the LACC, Conporec also announces the temporary shut down of its Sorel-Tracy municipal solid waste facility. The resumption of the activities will be function of a new contractual agreement with the customers of this installation. However, Conporec continues its source separated organics composting activities at the Laprade Environmental Park (Bécancour, Ca) and also all of its engineering and construction activities, in particular for the Tournan en Brie plant (France) and for the Mindarie Regional Council plant (Australia).
In order to support the financial restructuring of Conporec, an arm's length subscriber has the intention to subscribe to a CA$1.5M mortgage. This mortgage is conditional to a due diligence and a negotiation between the parties, which have to be completed within the next fifteen days. Conporec will disclose the name of the aforementioned subscriber at the end of this period and will also disclose any new information about the current situation of the company.
Conporec inc. develops, owns and operates various patented technologies for the treatment and the recycling of solid waste into valuable resources and energy. The company successfully delivered or is in the process of completing plants in Canada, France, United States and Australia and has also completed about thirty other installations in Canada. Conporec is a socially responsible organization listed on the Toronto Stock Exchange (Venture) and the Alternext Stock Exchange in Paris.30-
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties or other factors that may cause actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
The TSX Venture Exchange has not approved the information contained herein and accepts no responsibility for it, nor the validity of the operation planned.
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