Superior Court of Justice Sanctions Hemosol Amended Plan of Compromise and Arrangement



    TORONTO, Aug. 13 /CNW/ - PricewaterhouseCoopers Inc. in its capacity as
interim receiver (the "Receiver") of the assets, property and undertaking of
1608557 Ontario Inc. (formerly known as Hemosol Corp.) ("1608557") and its
affiliate Hemosol LP (collectively, "Hemosol") announces that Hemosol's
amended plan of compromise, arrangement and reorganization pursuant to the
Companies' Creditors Arrangement Act and the Business Corporations Act
(Ontario) (the "Plan") was sanctioned today by the Ontario Superior Court of
Justice (the "Court"). As a result, the Receiver anticipates working with the
plan sponsor, Catalyst Fund Limited Partnership II, with a view to giving
effect and implementing the transactions and reorganizations contemplated by
the Plan.
    The Plan, if implemented, will provide for, amongst other things: (1) the
distribution to certain unsecured creditors of Hemosol, on a pro-rata basis,
of a pool of cash totalling $130,000, (2) the distribution to certain secured
creditors of Hemosol of shares of 1608557 Ontario Inc. and notes entitling
such creditors to share in net proceeds of a transaction, if any, to realize
on Hemosol's tax losses, (3) the compromise and release of all claims against
Hemosol and their respective employees, and former and present officers and
directors except specific claims described in the Plan and claims that cannot
be released at law, and (4) the dilution of the existing shares of Hemosol as
a result of the issuance of new and additional shares such that, if the Plan
is implemented, the existing shareholders shall retain no less than 1% of the
post-restructuring equity of the Company.
    It is not known at this time whether the conditions precedent to the
implementation of the Plan will actually be satisfied such that the Plan can
be implemented. However, if the Plan is implemented, it is anticipated that it
will result in a substantial dilution of the pre-restructuring shares of
1608557.
    Information in respect of the receivership, including the Plan, is
available at www.pwc.com/brs-hemosol.

    Certain statements concerning 1608557'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: 1608557's continued
viability as a going concern; the risk that 1608557 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 1608557 with Canadian securities regulatory authorities and the
U.S. Securities and Exchange Commission. 1608557 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: Information in respect of the receivership,
including the Plan, is available at www.pwc.com/brs-hemosol

Organization Profile

1608557 ONTARIO INC.

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