TORONTO, March 14 /CNW/ - Great Lakes Carbon Income Fund (the "Fund")
(TSX: GLC.UN) announced today that Rain Commodities (USA) Inc. ("Rain USA"),
Rain Commodities (Canada) Inc. ("Rain Canada") and Rain/GLC Holdings, LLC
(collectively, "Rain") have commenced legal proceedings against the Fund,
Carbon Canada Inc. and GLC Carbon USA Inc. ("GLC").
On March 12, 2007, the Fund announced that it received a proposal (the
"Oxbow Proposal") from Oxbow Carbon & Minerals Holdings, Inc. ("Oxbow") to
acquire all of the assets of the Fund at an effective price of C$13.50 per
unit of the Fund in cash. As previously announced, the Board of Trustees
determined that the Oxbow Proposal constitutes a superior proposal under the
Fund's existing agreement with Rain USA and Rain Canada (the "Rain
Agreement"), and has given Rain Canada a right until March 20, 2007 to match
the Oxbow Proposal.
Rain is seeking judicial determination that the contemplated financing
under the Oxbow Proposal cannot be completed because Oxbow is not able to
commit certain subsidiaries of the Fund to provide the security required to
complete Oxbow's financing. As a result, Rain believes that the Oxbow Proposal
cannot constitute a superior proposal for the purposes of the Rain Agreement.
Rain's position relates to the potential impact of Oxbow's proposed financing
on Rain USA's 20.23% ownership interest in GLC, a subsidiary of the Fund. A
hearing is scheduled on March 19, 2007 at the Superior Court of Justice in
About the Fund
The Fund is a trust established to hold indirectly the securities of GLC
Carbon USA Inc. ("GLC"). The Fund currently holds an indirect 73.56% interest
in GLC. GLC is the world's largest producer of both anode and industrial grade
calcined petroleum coke ("CPC"). Anode grade CPC is used in the production of
aluminum. Industrial grade CPC is used in the production of other industrial
materials including titanium dioxide. GLC produces CPC at its facilities
located in Port Arthur, Texas; Enid, Oklahoma; Baton Rouge, Louisiana; and La
Further information on the Fund can be found in its disclosure documents
filed with the securities regulatory authorities, available at www.sedar.com.
Forward Looking Information
This release includes certain forward-looking statements including,
without limitation, statements concerning the Fund's future financial
position, business strategy, proposed transactions, projected costs and plans
and objectives of management for future operations. Forward-looking statements
generally can be identified by the use of forward-looking terminology such as
"may," "will," "expect," "intend," "estimate," "anticipate," "believe,"
"should," "plans," or "continue" or the negative thereof or variations thereon
or similar terminology. Although the Fund believes that the expectations
reflected in such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to be correct. These
forward-looking statements are subject to a number of risks and uncertainties,
and actual results could differ materially from those anticipated in these
For further information:
For further information: about the Fund please contact: Ronald J.
Statile, Senior Vice President and Chief Financial Officer, Great Lakes Carbon
LLC, at (212) 370-5770