Winalta Inc. Announces Sixth Extension of CCAA Protection and Filing of a
Plan of Arrangement
CALGARY, Sept. 26 /CNW/ - Winalta Inc. (TSX-V-"WTA.A") ("Winalta") announces that the Court of Queen's Bench of Alberta, Judicial Centre of Edmonton (the "Court") has granted an extension, until October 31, 2010, of the initial Order granted on April 26, 2010 pursuant to which Winalta was granted creditor protection under the Companies Creditors Arrangement Act (Canada) (the "CCAA"). The extension was supported by Deloitte & Touche, Inc., the Court-appointed Monitor of Winalta's CCAA process and was not objected to by counsel to Winalta's secured creditor, HSBC Bank of Canada.
In conjunction with its application to have the stay period under Winalta's CCAA process extended, Winalta, together with its subsidiaries, Winalta Carriers Inc., Baywood Property Management Inc. and Winalta Oilfield Rentals Inc., was also permitted by the Court to file a Plan of Arrangement to be presented to affected creditors of Winalta at a meeting of such creditors to be held on Thursday, October 14, 2010. Under the Plan of Arrangement, creditors will be offered payment of 100% of their proven claim, such amount to be payable on the terms set forth in the Plan of Arrangement. Should the Plan of Arrangement be approved by the requisite majority of affected creditors, Winalta plans on bringing a motion to the Court on October 22, 2010 for a Sanction Order sanctioning the Plan of Arrangement and providing for its implementation. Following receipt of the Sanction Order, Winalta Inc. and its subsidiaries, Winalta Carriers Inc., Baywood Property Management Inc. and Winalta Oilfield Rentals Inc. will amalgamate into Winalta Inc. and Winalta will emerge from CCAA protection and will operate its remaining core business being an oilfield rentals business.
It is expected that if the Plan of Arrangement is approved, Winalta's other subsidiaries, being Winalta Carlton Homes Inc., Winalta Homes Inc., Winalta Construction Inc., Winalta Holdings Inc. and 916830 Alberta Ltd. will be placed into receivership effective October 29, 2010.
Winalta Inc. is an Oilfield Rentals provider that leases portable industrial accommodations and catering services to the energy sector.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities legislation, including the timing and continuance of CCAA protection, the timing of the meeting to approve the Plan of Arrangement and the completion of transactions related thereto. Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Winalta to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Specifically, some of the material risks include the uncertainty involved in the Court proceedings and the implementation of the Plan of Arrangement under the CCAA.
The forward-looking information contained in this news release represents the expectations of Winalta as at September 27, 2010 and, accordingly, is subject to change after such date. However, Winalta expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.
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For further information: Artie Kos, President and Chief Executive Officer, Phone: (780) 960-6900, Fax: (780) 962-9523; Austin Fraser, Senior Vice President, Phone: (780) 960-6900, Fax: (780) 962-9523
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