EDMONTON, Feb. 19 /CNW/ - Raydan Manufacturing Inc. (TSX-V: RDN) announced that effective today Raydan Manufacturing Ontario Inc. ("Raydan Ontario"), a wholly owned subsidiary of the Company, will cease operations.
The Company has also appointed PricewaterhouseCoopers Inc. as the receiver of the assets of Raydan Ontario. This appointment follows the decision of the Company to provide a notice of intention to enforce security to Raydan Ontario pursuant to the Bankruptcy and Insolvency Act (Canada). Raydan Ontario has waived the notice period in respect of the Company's intention to enforce its security.
After careful examination, it was clear that the best way to protect the Company and its creditors would be to privately appoint a receiver and to enter Raydan Ontario into voluntary receivership. PricewaterhouseCoopers Inc., as receiver, will develop a plan to maximize the realization of Raydan Ontario's assets for all creditors, including those persons having claims in priority to the Company.
This closure applies to operations in Ontario only and will minimally affect the Company's operations in Alberta. The Company will concentrate its future efforts on manufacturing for current customers as well as expanding its manufacturing customer base and developing new product lines. These avenues have historically proven to be the most profitable revenue generators for the Company.
About Raydan Manufacturing Inc
Raydan Manufacturing Inc based in Edmonton, Alberta, develops and produces specialized suspension and coupling systems for trucks, trailers and heavy equipment. Installations are completed at the Company's chassis modification centre in Alberta. Established in 1992, the Company exports its innovative, high-quality products to end-users and original equipment manufacturers (OEMs) in the heavy-duty truck, truck crane, fire/rescue and other severe use sectors around the world.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. Potentially, many factors could cause our actual results to vary materially from those described herein as intended, planned, anticipated or expected. Raydan Manufacturing Inc. does not intend and does not assume any obligation to update these forward-looking statements.
SOURCE RAYDAN MANUFACTURING INC.
For further information: For further information: Raydan Manufacturing Inc., Joan Richardson, Tel: (780) 955-2859, Toll Free: 1-888-472-9326, firstname.lastname@example.org, www.raydanmfg.com