RS Provides Update on CCAA Proceedings

CALGARY, Aug. 8, 2013 /CNW/ - RS Technologies Inc. ("RS" or the "Company"), an ISO 9001:2008 certified company that designs, engineers and manufactures composite utility poles, announced that it has taken several important steps under its Companies' Creditors Arrangement Act (Canada) ("CCAA") proceedings that were commenced on March 14, 2013.

As disclosed previously, the Company, together with FTI Consulting Canada Inc. in its capacity as a court-appointed monitor (the "Monitor"), underwent a sale and investor solicitation procedure ("SISP") to market its business to potentially interested parties. At the conclusion of the first phase of the SISP, the Monitor did not receive any Non-Binding Indications of Interest, as such were defined in the SISP. As a result, the Monitor terminated the SISP.

Negotiations to conclude a transaction, either in the form of a sale of some or all of the Company's assets or an equity investment with a restructuring of RS's outstanding indebtedness, are continuing between the Monitor, the Company, Werklund Capital Corporation ("WCC"), Melbye Skandinavia AS ("Melbye" and collectively with WCC, the "Stalking Horse Credit Bidder") and various stakeholders groups. In its Third Report to the Court dated June 21, 2013, the Monitor expressed its hope that such negotiations would be completed in the near term and that an application for approval of the implementation of a credit bid purchase agreement with the Stalking Horse Credit Bidder would be brought forward in the near future. That report, together with other Court-filed materials including the Monitor's Fourth Report to the Court dated July 25, 2013, continue to be available at the following website: http://cfcanada.fticonsulting.com/RS/.

Because of the negotiations outlined above, RS has had its CCAA stay of proceedings extended on two occasions; first on June 27, 2013 when it was extended until July 31, 2013 and secondly on July 29, 2013 when it was extended until August 31, 2013. Similarly, RS, again through and with the consent of the Monitor, has extended the expiry date of the interim financing agreement in place between it and WCC and Melbye. Notwithstanding these extensions, the amount of funding available to RS under the facility has not been increased beyond the Court-approved $2.75 million level, as previously disclosed.

Since the commencement of the CCAA proceedings, the Company has continued as a going concern and with its operations in the normal course, and RS has continued to receive, process and ship orders for poles to its global customer base.

Certain information regarding RS in this news release including management's assessment of future plans and operations and the timing thereof, may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with loss of markets, currency fluctuations, competition from other systems providers, the ability to access sufficient capital from internal and external sources and the uncertainty involved in Court proceedings and the successful implementation of any transaction, including a Plan of Arrangement, under the CCAA.  As a consequence, RS's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or, if any of them do so, what benefits RS will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and RS does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

About RS
RS is an ISO 9001:2008 certified company that designs, engineers and manufactures composite utility poles. The poles are used in transmission, distribution and communication applications and offer a lighter, more durable and longer-lasting solution over wood, steel and concrete alternatives. In many instances, the environmentally friendly poles deliver the lowest total installed and lifecycle cost solution of any pole on the market. With installations dating back to 2003, RS has over 290 customers globally.

SOURCE: RS Technologies Inc.

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