Debenture Holder Action Initiated In accordance with the remedy provisions of the Indenture Agreement, debenture holders who wish to enforce their rights must follow a two step process as follows:
1. Debenture holders must contact the Depository, CDS Clearing and Depository Services Inc. to request they notify Discovery Air Inc. of defaults under Article 8.1(a)(iv) of the Indenture in the observance or performance of a covenant or condition of the Indenture by the Corporation. Discovery Air then has 30 days to remedy any such breech. Given the remedy would require Discovery Air to relist its common shares, the Corporation will be unable to remedy the breech, and would have to seek a waiver from the debenture holders. We believe this will not be granted.
2 With the defaults not being remedied, the Debenture holders can then make a written request to the Trustee (Computershare) to recognize an Event of Default exists and has not been remedied within the prescribed time frames as set out in the Indenture. This then triggers the requirement for the immediate redemption of the Debentures to be enforced by the Trustee.
If the Trustee does not act, then the conditions for launching a legal action will be in place, and a Class ACtion would follow.
The necessary documents to initiate step 1 are being sent today to the debenture holders who have agreed to participate in this process, currently representing 26% of the issued and outstanding debentures. CDS and the Trustee have been informed that such action has been initiated.
If you would like to join this effort today, or participate in the second step 30 days from today, you are welcome to register at www.discoverydebenture.ca
Thank you.