Company: Global Railway Industries Ltd.
Stock Symbol: GBI
Listing: Toronto Stock Exchange
Outstanding Shares: 15.2 Million
Web Site: www.globalrailway.com
LACHINE, QC, Aug. 20 /CNW/ - Global Railway Industries Ltd., www.globalrailway.com, ("Global" or the "Company"), today announced the closing of the sale of the business and substantially all of the assets and liabilities of Bach Simpson Corporation ("Bach") to Wabtec Corporation (NYSE: WAB) for approximately $13.0 million.
Approximately 15% of the purchase price for Bach is being held in escrow for potential indemnification claims. After deducting the escrowed amount, working capital adjustments, lease termination costs and estimated transaction related costs, Global received cash of approximately $10.0 million on the closing of the sale of Bach.
Approximately $2.4 million of the net proceeds from the transaction were applied to retire the Company's operating loan facility. The Company is currently in discussions with one of its Lenders, as well as other lenders, regarding the establishment of new credit facilities.
The Company's Special Committee will continue its mandate to evaluate strategic alternatives for CADRI and Global.
THIS NEWS RELEASE MAY CONTAIN FORWARD LOOKING INFORMATION. ACTUAL FUTURE RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS, UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED ANNUAL REPORT AND ANNUAL INFORMATION FORM. ACCORDINGLY, NO ASSURANCES CAN BE GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE FORWARD-LOOKING STATEMENTS WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO, WHAT BENEFITS THE COMPANY WILL DERIVE THEREFROM.
About Global Railway Industries Ltd.: Global Railway Industries Ltd. is a public company whose shares are listed for trading on the Toronto Stock Exchange (TSX) under the symbol "GBI". For more information: visit www.globalrailway.com or www.investorfile.com.
SOURCE Chinook Tyee Industry Limited
For further information: For further information: Fausto Levy, President & CEO, Tel: 514-634-6224 Ext. 136, E-mail: email@example.com; Brian McMullan, Tel: 514-634-6224 Ext. 136, E-mail: firstname.lastname@example.org