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ORTNEWBIEon Feb 28, 2018 4:05pm
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THE NAIL IN ORBITE'S COFFIN: RIP
THE NAIL IN ORBITE'S COFFIN: RIPOrbite provides a corporate update
MONTREAL, QUEBEC--(Marketwired - Feb. 27, 2018) - Orbite Technologies Inc. ("Orbite" or the "Company") (NEX:ORT.H)today provided an additional update on its efforts to emerge from insolvency protection for the benefit of all of its stakeholders.
Extension of the maturity date of the DIP Financing
On August 2, 2017, the Company announced that the Quebec Superior Court (the "CCAA Court") approved a $6.8 million Debtor-in-possession ("DIP") financing entered into with Computershare Trust Company of Canada in its capacity as trustee for the holders of the 2015 ITC Debentures (the "Lender"). The DIP financing provided namely for a maturity date of February 23, 2018.
The Company entered into an amendment agreement with the Lender to extend the maturity date of the DIP financing from February 23, 2018 to April 15, 2018. The other terms and conditions of the DIP financing remain in force unamended.
Please refer to the press release of August 2, 2017 for more information on the DIP financing and use of funds.
Motion filed against insurer to receive indemnification payment is denied
On November 16, 2017, the Company announced it had filed a motion against its insurer Royal Sun Alliance for the payment of approximately $23.3 million to recover the costs associated with repairing the heating element system of the calcination equipment and the fixed costs incurred during the downtime experienced. The court has rendered a decision on February 23, 2017 which denies the motion filed by Orbite.
Orbite is not in agreement with the decision and is currently reviewing its options with its legal counsels. The Company will provide updates in due course.