GrowthWorks Canadian Fund Files for Creditor Protection
TORONTO, Oct. 1, 2013 /CNW/ - GrowthWorks Canadian Fund Ltd. ("Canadian Fund") announced today that its Board of Directors has authorized the fund to initiate proceedings (the "CCAA Proceedings") in the Ontario Superior Court of Justice seeking a court supervised process under the Companies' Creditors Arrangement Act ("CCAA").
In the CCAA application, Canadian Fund seeks approval for a court supervised process for the ongoing management of Canadian Fund, including the disposition of Canadian Fund's portfolio investments, the refinancing of Canadian Fund's secured payment obligations to Roseway Capital S.a.r.l. ("Roseway") under the Participation Agreement between Canadian Fund and Roseway dated May 28, 2010, as amended (the "Participation Agreement"), and other strategic alternatives. The CCAA application also seeks a stay of certain creditor claims that would enable Canadian Fund to maintain normal business operations as the strategic process is implemented. Court proceedings are to take place today in Toronto.
Canadian Fund and Roseway have not reached agreement on the terms of an extension of Canadian Fund's payment obligations to Roseway under the Participation Agreement totalling approximately $27,264,570, which has resulted in those amounts becoming due. Canadian Fund has insufficient current assets to satisfy those obligations. As a result, Canadian Fund, with the support of Roseway, will initiate the CCAA proceedings.
Canadian Fund also announced the termination of the amended and restated management agreement dated as of July 15, 2006 between GrowthWorks WV Management Ltd. and Canadian Fund in accordance with its terms and the removal of David Levi as President and Chief Executive Officer, Clint Matthews as Chief Financial Officer and David Jennings as Secretary of Canadian Fund. Canadian Fund has appointed C. Ian Ross as Interim Chief Executive Officer.
Canadian Fund will continue to pursue the divestment of its investment portfolio with a view to maximizing the return on its assets under the oversight of the Board of Directors of Canadian Fund and with the advice of its advisors.
Further information can be found at www.GWCanadianFund.ca.
Forward Looking Statements: This press release contains forward looking statements, including statements with respect to the CCAA proceedings. These forward-looking statements reflect management's current views and are based on certain assumptions, including assumptions as to future operating conditions and courses of action, sale or refinancing alternatives, economic conditions and other factors management believes are appropriate. Such forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in these statements, including the risk that disposition of Canadian Fund's portfolio investments or refinancing or other strategic alternatives may not be available on terms acceptable to Canadian Fund, or at all, or that any such disposition or other strategic alternative would yield proceeds sufficient to satisfy in full Canadian Fund's payment obligations to Roseway or any distribution to Canadian Fund's shareholders, as well as those risks and uncertainties disclosed in Canadian Fund's most recently filed prospectus and other regulatory filings posted on SEDAR at www.sedar.com. These risks and uncertainties may cause actual results, events or developments to be materially different from those expressed or implied by such forward-looking statements. Unless required by law, neither Canadian Fund nor its manager assumes any obligation to update any forward-looking statements, whether as a result of new information, future events or results or other factors.
SOURCE GrowthWorks Canadian Fund Ltd.For further information:
C. Ian Ross
Chairman and Interim Chief Executive Officer
Tel: (416) 934-7777
Suite 2200, Exchange Tower
130 King Street West, Toronto, Ontario M5X 1E3