Its Done KGIC lender demands $12.3-million payment
KGIC Inc (C:LRN)
Shares Issued 179,169,923
Last Close 1/25/2017 $0.005
Thursday January 26 2017 - News Release
Mr. Shahzad Rashid reports
KGIC INC. ANNOUNCES DEMAND BY LENDER, NOTICE OF INTENTION TO ENFORCE SECURITY AND COURT APPOINTMENT OF A RECEIVER
KGIC Inc.'s lender, CIBT Finance (2017) Corp., has made demand upon KGIC as debtor and 23 of KGIC's subsidiaries as guarantors for payment in full of KIGC's outstanding indebtedness in the aggregate amount of $12,301,231 by Feb. 7, 2017. In addition, CIBT has provided KGIC and each of the guarantors with a notice of intention to enforce security pursuant to Subsection 244(1) of the Bankruptcy and Insolvency Act (Canada).
The company also announces that, pursuant to an order of the Supreme Court of British Columbia dated Jan. 25, 2017, BDO Canada Ltd. was appointed as receiver and manager, without security, of all of the assets, undertakings and properties of the company. The receiver was appointed pursuant to an application brought by CIBT.
In light of the above, three of the company's four directors have resigned, being Dr. Alex MacGregor, Martin Bernholtz and Ako Ufodike. The sole remaining director, Shan Padda, has indicated his intention to resign.
About KGIC
KGIC owns and operates private English-as-a-second-language (ESL) schools, career colleges and community colleges in Toronto, Vancouver and Victoria.
We seek Safe Harbor.