New Update cross your fingers and toes!!
V.ORT | 1 day ago LAVAL, Qubec, March 06, 2019 (GLOBE NEWSWIRE) -- Orbite Technologies Inc. (NEX: ORT.H) (Orbite or the Company) today provided an update on its progress in implementing the solutions to resolve the issues encountered with the calcination equipment at its HPA Plant, as part of its plan to emerge from CCAA protection. Definitions of the capitalized terms used herein can be found at the end of this press release. CCAA Court extends the Stay Period and approves interim financings As announced on January 30, 2019, the CCAA Court issued an order pursuant to the CCAA extending the Stay Period until March 8, 2019. On March 6, 2019 the CCAA Court granted a motion filed by the Company and issued a fifth amended and restated initial order providing namely for the following orders: extending the Stay Period until June 7, 2019; approving an Amended Second DIP Financing which increases the loan made in June 2018 by $650,000, for a total amount of $8.1 million extended to date, and a related DIP super-priority charge over the Companys assets. The loan will serve for working capital and other general corporate purposes. The terms and conditions of the Amended Second DIP Financing are substantially the same as for the Initial DIP Financing. approving a $2 million DIP financing and a related DIP charge over the Companys assets. The loan will be disbursed in two equal installments and will serve to finance the required modifications at the HPA Plant which are under way. The terms and conditions of the DIP Loan and of the Amended Second DIP Financing are disclosed in more detail in the Monitors report filed with the Companys motion and will be filed in due course on SEDAR. amending the terms of the Key Employees Retention Program initially disclosed on May 24, 2017 to increase the number of eligible key employees and the amounts they are entitled to. The amount of the charge over the Companys assets remains however unchanged. According to the Companys cashflow projections filed with the CCAA Court, the $2,650,000 to be received as per the above should allow the Company to maintain its operations until the week of June 11, 2019. Update on Outotec Calcination Equipment As was announced on January 30, 2019: The Company started up the hydrometallurgical section of the HPA Plant in February 2019 and will soon re-commence the production of ACH crystals required to feed the pyro metallurgical section (decomposition and calcination) which is still expected to be started up at the beginning of the second quarter of 2019. After the start-up the HPA Plant and the production of a limited quantity of HPA to demonstrate the Plants capacity, it is then expected that the production activities will be put on hold while Orbite completes the required steps to emerge from CCAA protection. The required modifications, to both the calcination equipment and upstream sections of the plant, are being carried out by both Orbite personnel and outside contractors and are progressing as per project plan and within budget. The Company will provide further updates as developments occur. There can be no guarantees that the Company will otherwise be successful in its restructuring efforts and will emerge from CCAA protection. Definitions Amended Second DIP Financing: $1.3 million DIP financing from the DIP Lender and a related DIP super-priority charge over the Companys assets. An initial portion of $650,000 was extended to the Company in June 2018. CCAA: Companies Creditors Arrangement Act. CCAA Court: Quebec Superior Court. DIP Lender: Computershare Trust Company of Canada in its capacity as trustee for the holders of Orbites 7% Convertible Secured Debentures due September 28, 2018. Initial DIP Financing: the $6.8 million debtor-in-possession (DIP) financing from the DIP Lender and a related DIP super-priority charge over the Companys assets. HPA Plant: the Companys high purity alumina (HPA) plant, in Cap-Chat, Qubec. ACH: aluminum chloride hexahydrate, the precursor to high purity alumina. Stay Period: Period of time during which there is a stay of all proceedings against the Company. Read more at https://stockhouse.com/news/press-releases/2019/03/06/orbite-provides-corporate-update#ptbFAGkx3YrQxCgb.99