PLANET ORGANIC HEALTH CORP : Planet Organic Health . Credit Default
27 sept. 2009•16:08
Source: Planet Organic Health Corp.
On Wednesday September 16, 2009, 9:15 am EDT
EDMONTON, Sept. 16 /CNW/ - Planet Organic Health Corp (TSX Venture Exchange - "POH"), Planet Organic Health Corp.'s (the "Corporation") board of directors is continuing to review its strategic alternatives for optimizing shareholder value with the objectives of reducing corporate debt and focusing its resources on the most profitable operating segments of its business.
In keeping with these objectives, the board of directors is considering disposing of certain non-core assets in order to reduce its aggregate debt load, which is currently $39,284,258 Cdn. The Corporation has engaged a reputable investment bank to evaluate the sale of certain assets and/or its operations on a case by case basis. The Corporation cautions shareholders that no specific timetable has been set as it relates to any dispositions due to continuing market weakness. Shareholders are further cautioned that the Corporation's lenders have the legal right to enforce their general security agreement over all of the Corporation's assets immediately. It may be necessary for the Corporation to consider substantial divestitures of its current operations to satisfy its debt obligations and continue operating as a going concern. In an effort to reduce administrative overhead, the Corporation's board of directors have approved a possible future delisting from the TSXV. Any subsequent transactions may be subject to regulatory and/or shareholder approval and there is no assurance that the review conducted by the board will result in any specific transactions being completed.
The Corporation remains in default of its debt facilities and is currently in the process of negotiating a Forbearance Agreement with its lenders, but has not come to terms at this point. In the event negotiations with the lenders are not successful in refinancing the Corporation and re-setting its loan covenants, the Corporation will be forced to seek financing from other sources to meet debt repayment needs if the current lenders demand repayment of the outstanding amounts payable. Although credit markets appear to be strengthening, there is uncertainty whether sufficient funding would be available from current lenders or other parties.
In addition to the above, the following management changes have been implemented and take effect immediately. Brent Knudsen, currently a director of the Corporation and a member of the "Office of the CEO" has accepted the role as Chairman of the Board, Darren Krissie has accepted the role of Executive Vice President, Business Development and continues to work in the "Office of the CEO" with Brent Knudsen and Arthur Warshaw (Advisor). Yvan Boutin, currently the Corporation's Director of Finance, has accepted the role of Chief Financial Officer, subject to TSXV acceptance. Ron Francisco, the Corporation's former President, CEO, and Chairman of the Board, has been released from all formal roles with the Corporation but remains a member of the board of directors.
The Corporation will be releasing its annual financial statements and MD&A, which will include all financial data, at the market close Wednesday October 28, 2009 with a press release scheduled for the same time.
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