BURLINGTON, ON, Feb. 18 /CNW/ - IPICO Inc. (TSX-V:RFD) ("IPICO" or the "Company") filed today a proposal to its creditors under
the Bankruptcy and Insolvency Act (Canada). Under the proposal the
Company will request the approval of its creditors and the Ontario
Superior Court of Justice to a reorganization of its debts and capital
IPICO is negotiating the terms of a potential interim loan facility with
Brookfield Asset Management Inc. ("Brookfield"), majority holder of its
Series C Secured Debentures. It is expected that the proposed loan
facility will be submitted to the Court for approval as soon as
possible. It is anticipated that the loan facility will allow the
Company and its operating subsidiaries to carry on business during the
formal Court process. If implemented the proposal will result in the
cancellation of all of IPICO's outstanding common shares and Class A
Preferred shares without any payment or compensation to holders of
those shares and Brookfield or an affiliate thereof will subscribe for
all of the new common shares of IPICO.
If the agreement on the interim loan facility is reached and the
proposal is approved by affected creditors and the Court, IPICO will
continue to operate as a subsidiary of Brookfield. However, if
agreement on the interim loan facility is not reached, or if the
proposal is not approved by affected creditors and the Court, it is
expected that IPICO will become bankrupt and be placed into
For purposes of the proposal and reorganization IPICO has retained Ernst
& Young Inc. to act as its trustee and Fasken Martineau DuMoulin LLP as
its counsel. IPICO has received the resignations from its board of
directors of Steven Adams, John Gillies and Rob Bird. Gordon Westwater,
Melvin Steinke, Frank Anderson and Allan Beach are the remaining
members of the board of directors.
This news release contains certain forward-looking statements regarding
IPICO's future intentions with respect to the proposal, the interim
loan facility and related future events. Any statements in this news
release that are not statements of historical fact may be considered to
be forward-looking statements. Written words such as "may", "will",
"expect", "believe", "anticipate", "estimate", "intends", "goal",
"objective", "seek", "attempt", or variations of these or similar
words, identify forward-looking statements. These statements by their
nature are estimates of future results only and involve substantial
risks and uncertainties, including those detailed from time to time.
Actual results could differ materially from those contained in the
forward-looking statements and are based on current expectations that
involve a number of risks and uncertainties, including, but not limited
to, the inability to close the interim credit facility or the failure
to settle and enter into definitive documentation, or the failure to
receive all necessary creditor, court or other approvals on terms
acceptable to IPICO and the creditors involved. These and other risks
may be detailed from time to time in IPICO's periodic reports filed on
SEDAR. IPICO undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
ABOUT IPICO Inc. IPICO Inc. is an RFID solution supplier with operations in Canada, USA,
South Africa, Europe, and Asia. IPICO produces smart labels, tags and
readers based on the IP-X communication protocol. Its products are
designed to conform to regulatory requirements in most major geographical regions, to excel at long read range, fast multi-read
anti-collision and high thru-beam read-speeds of dynamic tag
populations, and to allow for multi-reader rollout in close proximity.
IPICO's products are used to optimize the management of products,
equipment, people, animals and processes within the logistics and other
value chains. For further information, go to www.ipico.com.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE IPICO Inc.
For further information:
Gordon Westwater, President & CEO, IPICO Inc.
Tel: (905) 631-6310 E: firstname.lastname@example.org