Armtec Announces Closing of Brookfield Transaction

CONCORD, ON, June 1, 2015 /CNW/ - Armtec Infrastructure Inc. (the "Company") today announces that it has closed the sale of substantially all of its assets to Armtec LP ("New Armtec"), an affiliate of Brookfield Capital Partners Fund III LP. The principal terms of this transaction (the "Brookfield Transaction") were previously disclosed in the Company's news releases dated February 25, 2015 and April 29, 2015. As previously announced, the Brookfield Transaction was approved by the Ontario Superior Court of Justice (the "Court") in the Company's proceedings under the Companies' Creditors Arrangement Act (the "CCAA Proceedings"). 

Pursuant to the Brookfield Transaction, New Armtec has acquired substantially all of the Company's assets on a going-concern basis, assumed substantially all of the Company's obligations to trade creditors and all employee obligations, and assumed the Company's revolving credit facility with its operating lenders and the Company's bonding agreement with Trisura Guarantee Insurance Company.  New Armtec did not assume any of the Company's obligations under its 8.875% senior notes due 2017 (the "Senior Notes") or its 6.50% convertible unsecured subordinated debentures due 2017 (the "Convertible Debentures").  The Brookfield Transaction did not provide any recovery for the holders of the Senior Notes, Convertible Debentures or the Company's common shares. 

Ernst & Young Inc. is serving as the Court-appointed monitor as part of the CCAA proceedings.  Documents relating to the CCAA proceedings are available on the monitor's website:

SOURCE Armtec Infrastructure Inc.

For further information: Carrie Boutcher, Vice President & Corporate Secretary, Tel: (647) 795-9290


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