WINNIPEG, March 7, 2012 /CNW/ - All in West! Capital Corporation (the "Corporation") (TSX-V: ALW) announced today that it has delivered formal written notice to CIBC Mellon Trust Company, the indenture trustee for its Series A convertible debentures (TSX-V: ALW.DB.A) (the "Series A Debentures") which mature on March 31, 2012, that the Corporation will default on its obligation to repay the principal amount and accrued interest on the Series A Debenture on the maturity date. The Corporation has been in default of its obligations relating to the Series A Debentures since April 30, 2010, when it ceased making monthly interest payments.
In addition to the current and anticipated default of the Corporation relating to its Series A Debentures, the Corporation is also in default of a number of its obligations under various financing documents. Such defaults include the following:
|(i)||the Corporation is in default of its obligation to pay interest on relating to the Series B convertible debentures (the "Series B Debentures") which mature on September 30, 2012. The Corporation ceased monthly interest payments on April 30, 2010;|
|(ii)||the Corporation is in default of its obligation to pay interest relating to its Series C senior convertible debentures (the "Series C Debentures") which mature on October 1, 2012. The Corporation ceased monthly interest payments on November 30, 2010;|
|(iii)||the Corporation is in default of its obligation to make principal and interest payments to the mortgagee under its mortgage financing and security documents relating to the Econolodge Inn and Suites in Hinton, Alberta. The outstanding mortgage balance is currently $6,404,820;|
|(iv)||the Corporation is in default of its obligation to make principal and interest payments to the mortgagee under its mortgage financing and security documents relating to the Days Inn Hinton, Alberta. The outstanding mortgage balance is currently $4,224,888; and|
|(v)||as a result of the defaults noted above, the Corporation is in breach of the "cross-default" covenants under its mortgage financing and security documents relating to the Phase I and Phase II Best Western hotels in Grande Cache, Alberta. The outstanding mortgage balances for such properties are currently $7,877,627 in respect of the Phase I property and $4,757,397 in respect of the Phase II property.|
The Corporation is in ongoing discussions with its mortgage lenders regarding the defaults under its mortgage indebtedness and potential restructuring of such indebtedness.
The Corporation is continuing to evaluate alternatives available to it. The Corporation announced today that it has formed a special committee. The mandate of the special committee will be to evaluate the Corporation's alternatives specifically as it relates to its outstanding convertible debentures and to make recommendations to the Board of Directors. This committee undertakes to communicate with bondholders within 90 days from now.
Caution Concerning Forward-Looking Statements
This news release of All in West! Capital Corporation (the "Corporation") contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). All statements other than statements of historical fact contained herein are forward-looking statements, including, without limitation, statements regarding the alternatives relating to its convertible debentures. Certain risks and uncertainties regarding the Corporation are more fully discussed in the Corporation's filings with Canadian provincial securities regulatory authorities, including its most recent management discussion and analysis, a copy of which is available on www.sedar.com. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The Corporation does not undertake any obligation to update forward-looking statements.
Neither the TSX Venture Exchange nor its service provider has reviewed or approved the contents of this press release.
For further information:
For further information please contact Mr. Cornelius Martens, President and Chief Executive Officer, or Cornelius William Martens, Investor Relations, Tel: (204) 947-1200.