/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
CALGARY, May 21 /CNW/ - Winalta Inc. (TSX-V-"WTA.A") announces today that the Court of Queen's Bench of Alberta, Judicial Centre of Edmonton (the "Court") has granted an extension until July 2, 2010 of the initial Order granted on April 26, 2010 pursuant to which Winalta was granted creditor protection under the Companies' Creditors Arrangement Act (Canada) (the "CCAA"). The extension was supported by Deloitte & Touche, Inc., the Court-appointed Monitor of Winalta's CCAA process and was not objected to by counsel to Winalta's secured creditor, HSBC Bank of Canada.
The Court has also approved the sale of 6.13 acres of highway commercial property in Grande Prairie, Alberta. As a result of this sale, Winalta will receive $1,440,000. The completion of this transaction is expected to occur on May 31, 2010.
Winalta also announces that Todd Channon will be resigning as Winalta's Chief Financial Officer in order to pursue other interests. Mr. Channon will remain with Winalta until June 11, 2010 in order to assist the Company with an orderly transition to the new Chief Financial Officer. Management and the Board of Directors would like to thank Mr. Channon for his work over the last three years and wish him success in his future endeavours.
David Hopley, who joined Winalta in June of 2008 as Corporate Controller, will be appointed Chief Financial Officer as of May 21, 2010, subject to regulatory approval. Mr. Hopley is a member of the Certified Management Accountants of Alberta and a member of Financial Executives International (FEI) Edmonton Chapter and has served on their Board of Directors. Prior to joining Winalta Inc., Mr. Hopley was a Regional Controller with Jayman Homes Builders. Most notably, David spent eight years with Corporate Express as Regional Controller and VP, leading accounting and financial reporting terms and overseeing the design and implementation of internal financial controls and processes. Mr. Hopley has also been involved in divestitures and acquisitions as well as consolidating regional operations with international experience in manufacturing and distribution operations.
Lastly, Winalta announces that it has discontinued negotiations with Allis Energy Services Inc., to acquire Winalta's Oilfield Rentals business and its Carrier division. Winalta will continue to review alternatives relating to all of its operating divisions as it continues with its CCAA restructuring efforts.
Winalta Inc. is an integrated company with three main operating divisions, Homes, Industrial, and Manufacturing. The Homes Division sells CSA approved homes via retail centers, communities and supply arrangements. The Industrial Division leases portable industrial accommodations. The Manufacturing Division builds CSA approved homes and portable industrial accommodations from facilities near Spruce Grove, Alberta.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities legislation, including the timing and continuance of CCAA protection. Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Winalta to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Specifically, some of the material risks include the uncertainty involved in the Court proceedings and the implementation of a Plan under the CCAA.
The forward-looking information contained in this news release represents the expectations of Winalta as at May 21, 2010 and, accordingly, is subject to change after such date. However, Winalta expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE Winalta Inc.
For further information: For further information: Artie Kos, President and Chief Executive Officer, Phone: (780) 960-6900, Fax: (780) 962-9523; Austin Fraser, VP Winalta Homes, Phone: (780) 960-6900, Fax: (780) 962-9523