RE: mc150000 / on the no imediate financing newsANOTHER EXTENSION UNTILL DECEMBER 22... but i am sure that we will have another extension... the judge will be shopping on the 22 and will not be available... I am sure
Press Release Source: Hemosol Corp.
Hemosol CCAA stay of proceedings extended
Wednesday November 15, 4:08 pm ET
TORONTO, Nov. 15 /CNW/ - PricewaterhouseCoopers Inc. (the "Receiver") in its capacity as interim receiver of the assets, property and undertaking of Hemosol Corp. ("Corp") and its affiliate Hemosol LP ("LP", and together with Corp, "Hemosol") today announced that the Ontario Superior Court of Justice granted an extension until December 22, 2006 of the stay of proceedings in the Companies' Creditors Arrangement Act proceedings of Hemosol. At the same hearing, the Court granted an increase in the borrowing powers of the Receiver which will now have the ability to borrow up to $6 million in connection with Hemosol's CCAA proceedings.
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At the hearing, the Receiver advised the Court of its intention to extend the date for certain conditions to be met under the plan sponsorship agreement with 2092248 Ontario Inc. (the "Plan Sponsor"). The current expiry date is November 17, 2006. While the Receiver and the Plan Sponsor will be working to finalize the document required to evidence the extension, the Plan Sponsorship Agreement will continue to be subject to conditions.
Also, given that a timetable as not yet been established for the previously announced motion to be brought by the Plan Sponsor in connection with the assignment by MDS Inc. of the debt owed to it by Hemosol, the Receiver is not in a position at this time to provide an update of the times and dates for the meetings of creditors or sanction hearing, should they in fact take place.
If the transactions contemplated by the Plan Sponsorship Agreement are implemented, they will result in a substantial dilution of the equity of Hemosol held by the shareholders existing at the time of implementation.