Tahera gets sponsorship deal, shareholders get no joy
Tahera Diamond Corp (2)(C:TAH)
Shares Issued 210,026,236
Last Close9/25/2008 $0.035
Friday September 26 2008 - News Release
Mr.R. Peter Gillin reports
TAHERA DIAMOND CORPORATION ENTERS INTO PLAN SPONSORSHIP AGREEMENT
Tahera Diamond Corp., as a result of the court-approved marketing process undertaken in the company's continuingproceedings under the Companies' Creditors Arrangement Act (CCAA), has signed aplan sponsorship agreement with 0835732 BCLtd., a privately held company owned by a group ofVancouver-based resource explorationists and developers. The company will beseeking court approval of the agreement on Sept. 29, 2008.
The plan sponsorship agreement contemplates transactionswhereby the company's liabilities will be compromised pursuant to aplan of arrangementunder the CCAA, with the cash to be financed by the plansponsor being used for payments to creditors and payments of the costsof theCCAA plan and the plan sponsor obtaining 100 per cent of the equity ofthe company viaa concurrent reorganization pursuant to the Canada BusinessCorporations Act.The agreement is subject to a number of conditions, including thecompletionof satisfactory due diligence by the plan sponsor on or before Oct. 31,2008, and the necessary creditor and court approvals of the CCAA plan.It isanticipated that the CCAA plan will be filed immediately after waiverof thedue diligence conditions.
The cash consideration being paid by the plan sponsor under the agreementis insufficient to pay all of the claims of creditors of the company in full.It is currently contemplated that if the restructuring plan is ultimatelyapproved and implemented, the existing shares of the company will be cancelledor acquired by the plan sponsor which will ultimately acquire the company. Novalue will remain available to shareholders as a result of this transaction.
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