TORONTO, March 20 /CNW/ - PricewaterhouseCoopers Inc., in its capacity as
interim receiver (the "Receiver") of the assets, property and undertaking of
Hemosol Corp. (TSX:HML) and its affiliate Hemosol LP (together, "Hemosol")
announced today that the plan sponsorship agreement (the "Plan Sponsorship
Agreement") entered into between the Receiver and 2092248 Ontario Inc. (the
"Plan Sponsor") expired at 5:00 pm yesterday, without being renewed. The Plan
Sponsor indicated to the Receiver that it did not wish to extend the time by
which certain conditions under the Plan Sponsorship Agreement had to be met.
As a result of the expiry of the Plan Sponsorship Agreement without those
conditions having been met, the Receiver, in accordance with the terms of the
Plan Sponsorship Agreement, will return the $1 million refundable deposit to
the Plan Sponsor.
The Plan Sponsor also notified the Receiver that it was discontinuing its
financing of the Companies' Creditors Arrangement Act ("CCAA") proceedings of
Hemosol. As such, the Receiver intends to bring a motion to the Court on
Friday March 23, 2007 to seek the Court's ratification and approval of the
execution by the Receiver today of a super-priority revolving financing
facility term sheet with Hemosol's existing primary secured creditor, The
Catalyst Group Inc. At the same hearing, the Receiver will ask the Court for
an extension of the current stay of proceedings against Hemosol until April
27, 2007. The Receiver believes that an extension of the CCAA stay is
appropriate at this time in order to allow time for the Receiver and Hemosol's
principal stakeholders to evaluate available options for the business of
Hemosol is an integrated biopharmaceutical developer and manufacturer of
biologics, particularly blood-related protein based therapeutics.
Certain statements concerning Hemosol's future prospects are
"forward-looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and other applicable securities
legislation. There can be no assurances that future results will be achieved,
and actual results could differ materially from forecasts and estimates.
Important factors that could cause actual results to differ materially from
forecasts and estimates include, but are not limited to: Hemosol's continued
viability as a going concern; the risk that Hemosol may not become profitable;
the Receiver's ability to complete a transaction pursuant to the terms of the
Order; and other factors set forth in filings with Canadian securities
regulatory authorities and the U.S. Securities and Exchange Commission. These
risks and uncertainties, as well as others, are discussed in greater detail in
the filings of Hemosol with Canadian securities regulatory authorities and the
U.S. Securities and Exchange Commission. Hemosol makes no commitment to revise
or update any forward-looking statements in order to reflect events or
circumstances after the date any such statement is made.
For further information:
For further information: visit Hemosol's website at www.hemosol.com.
Information in respect of the receivership is available at