The Company cuts back on financial expenses, restructures its balance
sheet and keeps its important liquid assets
TSX - V : CNP
SOREL-TRACY, QC, April 3 /CNW Telbec/ - Conporec Inc. ("Conporec")
(TSX-V: CNP) announces today that it has successfully completed its financial
restructuring with its main guaranteed creditors, pursuant to the terms
disclosed in January 2007.
As a result of the restructuring, the creditors have agreed to write off
$12,83M of debt against a total amount of $5,83M made of $3,75M in cash and
$2,08M in shares already announced.
From annual accounting standpoint, the restructuring will allow the
company to post an extraordinary profit of approximately $7.0M in its Q1-2007
financial statements. For the previous period, financial fees related to all
the loans amounted to approximately $800 000.
"The completion of this restructuring is a significant milestone for
Conporec. It will allow the company to maintain its organic growth and will
provide solid ground to proceed with our acquisition program. It will further
support the company's staged development plan and will result in the sustained
creation of value for our shareholders", explains Mr. Jean Beaudoin, President
and Chief Executive Officer of the Company." Combined with the $11.5M
financing announced last December 2006, Conporec is now in an excellent
position to make a significant progress towards the objectives of its business
plan", concludes the President.
Conporec Inc. treats and recycles municipal solid waste through a
patented composting and sorting technology. This process reduces the need for
landfill disposal by treating 100% of the organic content contained in solid
waste, thus reusing and recycling up to 75% of the original waste mass. In
addition, the technology helps to reduce greenhouse gases that are typically
released through the decomposition of garbage in landfills. The company has
successfully operated a plant in Sorel-Tracy, Quebec and recently completed a
second facility in New York State (United States). A third facility is
currently under construction in France near Paris. Through Biomax Inc.,
Conporec has also delivered thirty different composting facilities that have
the capacity to produce more than 300 000 tons of compost annually. Conporec
is a socially responsible organization listed on the TSX Venture Exchange.
Forward-looking statements contained in this press release involve known
and unknown risks, uncertainties or other factors that may cause actual
results, performance or achievements of the company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements.
The TSX has not approved the information contained herein and accepts no
responsibility for it, nor the validity of the operation planned.
For further information:
For further information: Jean Beaudoin, President and CEO, (450)
746-9996, (418) 527-9996; Benoit Côte, Special Advisor, (418) 564-7999;
Source: Conporec Inc., www.conporec.com