RE:Fight KGIC has no leverage and all of the KGIC directors have resigned.
TORONTO, Jan. 26, 2017 /CNW/ - KGIC Inc. ("KGIC" or the "Company") (TSX VENTURE: LRN) announces that its lender, CIBT Finance (2017) Corp. ("CIBT"), has made demand upon KGIC as debtor, and 23 of KGIC's subsidiaries as guarantors (collectively, the "Guarantors") for payment in full of KIGC's outstanding indebtedness in the aggregate amount of $12,301,231 by February 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 January 25, 2017, BDO Canada Limited was appointed as receiver and manager ("Receiver"), 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.
Read more at https://www.stockhouse.com/news/press-releases/2017/01/26/kgic-inc-announces-demand-by-lender-notice-of-intention-to-enforce-security-and#IAuztmHoYvv1MGjM.99