THETFORD MINES, QC, Aug. 29, 2025 /CNW/ - Asbestos Corporation Limited ("ACL" or the "Company") (TSXV: AB.H) announced today that it continues to advance its restructuring efforts under the Companies' Creditors Arrangement Act ("CCAA"), following the issuance of an initial order on May 6, 2025 and of an Amended and Restated Initial Order ("ARIO") by the Superior Court of Québec (Commercial Division) (the "Court") on May 15, 2025.
The ARIO provided for:
- A stay of proceedings against ACL and its insurers until September 5, 2025, allowing the Company additional time to implement restructuring measures;
- Approval of interim financing of US$20 million by certain of ACL's insurers, of which approximately US$9.5 million (CAD$12.9 million) has been drawn as of June 30, 2025, primarily to cover professional fees and advisory costs related to the restructuring;
- Appointment of Raymond Chabot Inc. as court-appointed Monitor.
Since the issuance of the ARIO, ACL has made progress in its restructuring efforts, including:
- Appointment of a Chief Restructuring Officer (CRO): Mr. Leslie Lederer was appointed on June 18, 2025, to support the development and implementation of the claims process and restructuring strategy.
- Resolution of procedural challenges: ACL and its insurers, with the support of the Monitor, successfully defended a contestation filed by a group of U.S. litigants to certain provisions of the ARIO. An application for leave to appeal the dismissal of the contestation is scheduled to be heard on September 25, 2025.
- Advancement of U.S. recognition proceedings: On May 6, 2025, the United States Bankruptcy Court in the Southern District of New York, at the request of the Monitor as foreign representative of ACL, issued a temporary restraining order staying the claims against ACL and its insurers. The Chapter 15 recognition hearing, which deals with cross-border elements of restructurings, is scheduled for September 16, 2025. Despite the pending Application for Leave to Appeal, the hearing is expected to proceed as planned.
- Development of a comprehensive claims process: The parties are actively working to design a comprehensive and efficient claims process. The Company and its insurers, expect to seek approval of a claims bar date order in due time after the recognition order in the Chapter 15 proceedings.
ACL remains committed to conducting the restructuring process in a transparent and equitable manner..
As disclosed in the Company's unaudited financial statements for the quarter ended June 30, 2025, which are prepared on a consolidated basis with ACL's primary shareholder, Mazarin Inc., ACL recorded a loss primarily attributable to the professional and advisory fees incurred in the CCAA proceedings. ACL financed these costs through the interim financing from certain of its insurers approved by the Court as part of ACL's CCAA proceedings. These expenditures, while significant, are considered essential to advancing the restructuring process and preserving long-term value for stakeholders. The repayment of the interim financing is secured by a super-priority charge on ACL's assets. This charge ranks after that of Mazarin Inc., which holds a universal security interest over ACL's assets.
Documents related to the restructuring process, including the ARIO and the Monitor's reports, are available on the Monitor's website: https://www.raymondchabot.com/en/companies/public-records/asbestos-corporation/
Trading of ACL's common shares on the TSX Venture Exchange remains suspended.
About Asbestos Corporation Limited
Asbestos Corporation Limited is a natural resource company focusing on the development of industrial minerals to provide value-added products that meet customers' performance, economic, and ecological criteria worldwide. Asbestos Corporation Limited's shares trade on the NEX Board of the TSX Venture Exchange under the stock symbol AB.H.
Forward-Looking Information and Statements
This press release contains forward-looking statements that address future events and conditions, subject to various risks and uncertainties. Actual results could differ materially from those anticipated in such forward-looking statements due to numerous factors, some of which may be beyond the Company's control. These factors include general market and industry conditions, risks related to commissioning, continuous operations, commercialization of new technologies, the status and success of the Company`s restructuring and financing efforts and other risks disclosed in the Company's filings with Canadian Securities Administrators.
Forward-looking statements are based on the expectations and opinions of the Company's management as of the date of this press release. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise. As such, undue reliance should not be placed on forward-looking statements. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events, or otherwise, except as required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Asbestos Corporation Limited
For Further Information: For further information about ACL and the CCAA proceedings, please contact the Monitor: Raymond Chabot Inc., Email: [email protected]
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