Investment fund reports share ownership in Ainsworth Lumber Co. Ltd.



    TORONTO, July 29 /CNW/ - HBK Master Fund L.P. ("HBK") announced that
pursuant to the recapitalization transaction of Ainsworth Lumber Co. Ltd.
("Ainsworth") completed today, HBK has acquired beneficial ownership of
22,531,529 Common Shares of Ainsworth ("Common Shares") representing
approximately 24.9% of the issued and outstanding Common Shares and
9,511,931 warrants (the "Noteholder Warrants"), representing all of the issued
and outstanding Noteholder Warrants. Each Noteholder Warrant is (subject to
anti-dilution provisions) exercisable at any time for one Common Share without
payment of further consideration. In the event all of the Noteholder Warrants
are exercised, HBK would own approximately 32.0% of the issued and outstanding
Common Shares on a fully diluted basis (excluding the Common Shares issuable
on the exercise of the cashless warrants issued to existing shareholders of
Ainsworth in connection with the recapitalization).
    HBK has entered into an agreement with Tricap Partners II L.P. ("Tricap")
under which each of them has agreed that they will support the election to
Ainsworth's board of directors (the "Board") of a certain number of
individuals designated by the other party as well as the appointment of one
individual designated by the other party to each Board committee (each of
which is to be comprised of three directors). The number of individuals that
each party is entitled to designate for election to the Board will depend upon
its beneficial ownership of Common Shares, with HBK being entitled to
designate up to three individuals and Tricap being entitled to designate up to
two individuals. Initially, HBK will be entitled to designate three
individuals for election to the Board and Tricap will be entitled to designate
two individuals for election to the Board. Each of HBK and Tricap have
separately agreed that it will support the election to the Board of one
individual designated by an ad hoc group of noteholders formed relating to the
recapitalization.
    HBK acquired the Common Shares and Noteholder Warrants in exchange for
existing senior unsecured notes of Ainsworth held by HBK and as a result of
HBK purchasing new senior unsecured notes of Ainsworth and agreeing to
backstop the issuance of new senior unsecured notes of Ainsworth. HBK may in
the future acquire additional securities, dispose of all or part of its
securities, or continue to hold all or part of the securities, in each
instance based upon factors including, without limitation, Ainsworth's
financial position and strategic direction, actions taken by the Board, price
levels of the securities, other investment opportunities available to HBK,
regulatory restrictions, conditions in the securities market and general
economic and industry conditions.
    A copy of the report required to be filed by HBK under securities
legislation in respect of the acquisition will be available after filing at
www.sedar.com.





For further information:

For further information: Jon L. Mosle, HBK Master Fund L.P., c/o HBK
Services LLC, 2101 Cedar Springs Road, Suite 700, Dallas, Texas, 75201, Tel:
(214) 758-6107

Organization Profile

HBK MASTER FUND L.P.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890