CALGARY, Aug. 9 /CNW/ - Winalta Inc. ("Winalta") (TSX-V-"WTA.A") announces that the Court of Queen's Bench of Alberta, Judicial Centre of Edmonton (the "Court") has granted an extension, until August 31, 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 approved the sale of the Acheson facility and lands. As a result of this sale, Winalta will receive $12,300,000. The completion of this transaction is expected to occur on September 7, 2010.
The Court has also approved the sale of the three Drayton Valley Gravel pit leases. As a result of this sale, Winalta will receive $1,600,000. The completion of this transaction is expected to occur on October 6, 2010.
The proceeds from both these sales will be used and applied to HSBC outstanding balances and $36,000 will be held in trust pending settlement of CRA issue and then paid out to CRA or HSBC.
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 Oilfield Division leases portable industrial accommodations and catering services to the energy sector.
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 and the completion of transactions related thereto. 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 August 9, 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