NEWS bankruptcy notice of intention
Clearford Water files
Clearford Water files bankruptcy notice of intention
2022-04-29 09:07 ET - News Release
Mr. Kevin Loiselle reports
CLEARFORD WATER SYSTEMS INC. FILES A NOTICE OF INTENTION TO MAKE A PROPOSAL UNDER THE BIA
On April 28, 2022, Clearford Water Systems Inc. filed a notice of intention to make a proposal pursuant to the provisions of Part III of the Bankruptcy and Insolvency Act (Canada) (BIA).
Pursuant to the Notice, KSV Restructuring Inc. has been appointed as the proposal trustee (the "Trustee") and will assist the Company in its restructuring efforts. This filing follows the Company's ongoing strategic review of its options previously announced in its news release of March 23, 2020.
The filing of the Notice has the effect of imposing a 30-day statutory stay of proceedings that will protect the Company and its assets from enforcement actions. During this period, the Company expects to file a formal proposal under the BIA (the "Proposal"), setting forth a comprehensive plan for payment to the Company's creditors in due course.
The Company has taken this action under the BIA as the most expeditious and economical manner of addressing the interests of its creditors and allowing it to carry on its operations uninterrupted. Only Clearford Water Systems Inc. intends to file a Proposal, and its subsidiaries, including Clearford Waterworks Inc. will not be subject to the Proposal process. All of Clearford's subsidiaries will continue to operate in the ordinary course.
Management will work closely with the Company's board of directors and its financial and other advisors and, with the assistance of the Trustee, to maximize the realizable value of the Company's residual assets.
There can be no assurance that the process will result in the Company realizing any value in the Company's residual assets in any transaction or, if a transaction is proposed, that it will be successfully concluded in a timely manner or at all.
2022-04-29 09:07 ET - News Release
Mr. Kevin Loiselle reports
CLEARFORD WATER SYSTEMS INC. FILES A NOTICE OF INTENTION TO MAKE A PROPOSAL UNDER THE BIA
On April 28, 2022, Clearford Water Systems Inc. filed a notice of intention to make a proposal pursuant to the provisions of Part III of the Bankruptcy and Insolvency Act (Canada) (BIA).
Pursuant to the Notice, KSV Restructuring Inc. has been appointed as the proposal trustee (the "Trustee") and will assist the Company in its restructuring efforts. This filing follows the Company's ongoing strategic review of its options previously announced in its news release of March 23, 2020.
The filing of the Notice has the effect of imposing a 30-day statutory stay of proceedings that will protect the Company and its assets from enforcement actions. During this period, the Company expects to file a formal proposal under the BIA (the "Proposal"), setting forth a comprehensive plan for payment to the Company's creditors in due course.
The Company has taken this action under the BIA as the most expeditious and economical manner of addressing the interests of its creditors and allowing it to carry on its operations uninterrupted. Only Clearford Water Systems Inc. intends to file a Proposal, and its subsidiaries, including Clearford Waterworks Inc. will not be subject to the Proposal process. All of Clearford's subsidiaries will continue to operate in the ordinary course.
Management will work closely with the Company's board of directors and its financial and other advisors and, with the assistance of the Trustee, to maximize the realizable value of the Company's residual assets.
There can be no assurance that the process will result in the Company realizing any value in the Company's residual assets in any transaction or, if a transaction is proposed, that it will be successfully concluded in a timely manner or at all.