TORONTO, Dec. 2, 2013 /CNW/ - GrowthWorks Canadian Fund Ltd. (the "Fund") today announced that the Fund has received a letter from legal
counsel to GrowthWorks WV Management Ltd. (the "Former Manager"), the former manager of the Fund, relating to the termination of the
management agreement (the "Management Agreement") between the Fund and the Former Manager. The Fund previously
announced that, on September 30, 2013, the Fund had terminated
Management Agreement in accordance with its terms. In the letter, the
Former Manager asserts that the Management Agreement was terminated
without cause, and, as a result, it is entitled to damages from the
Fund in the amount of approximately $16.750 million. The Fund believes
that the claim by the Former Manager is without merit and will
vigorously defend the claim.
As previously announced, on October 1, 2013 the Fund commenced
proceedings under the Companies' Creditors Arrangement Act (the "CCAA") and, on November 20, 2013 the Fund obtained an order (the "Order") of the Ontario Superior Court of Justice authorizing the Fund to
initiate a Sale and Investor Solicitation Process (the "SISP"). CCC Investment Banking, the Fund's financial advisor, has commenced
contacting prospective strategic and financial partners interested in
participating in the SISP.
FTI Consulting Canada Ltd., the Court appointed monitor in the CCAA
proceedings, will supervise the SISP in accordance with the terms of
For further information, please refer to the monitor's website at http://cfcanada.fticonsulting.com/gcfl.
This press release contains forward looking statements, including
statements with respect to the CCAA proceedings. These forward-looking
statements reflect the Fund's current views and are based on certain
assumptions, including assumptions as to future operating conditions
and courses of action, sale or refinancing alternatives, economic
conditions and other factors the Fund believes are appropriate. Such
forward looking statements are subject to risks and uncertainties that
may cause actual results to differ materially from those contained in
these statements, including the risk that disposition of the Fund's
portfolio investments or refinancing or other strategic alternatives
may not be available on terms acceptable to the Fund, or at all, or
that any such disposition or other strategic alternative would yield
proceeds sufficient to satisfy in full the Fund's payment obligations
to Roseway Capital S.a.r.l., the Fund's other creditors or any
distribution to the Fund's shareholders; the risk that litigation or
defence proceedings involving claims by the Former Manager or other
third parties against the Fund may involve substantial expense and, if
successful, could require the Fund to pay substantial damages; and
those risks and uncertainties disclosed in the Fund's most recently
filed prospectus and other regulatory filings posted on SEDAR at
www.sedar.com. These risks and uncertainties may cause actual results,
events or developments to be materially different from those expressed
or implied by such forward-looking statements. Unless required by law,
the Fund does not assume any obligation to update any forward-looking
statements, whether as a result of new information, future events or
results or other factors.
SOURCE: GrowthWorks Canadian Fund Ltd.
For further information:
FTI Consulting Canada Inc. Court Appointed Monitor of GrowthWorks Canadian Fund Ltd.