Ascalade Communications Inc. Completes 100% Distribution to Creditors

    VANCOUVER, Aug. 13 /CNW/ - Ascalade Communications Inc. (the "Company")
announces that a final distribution to all of its proven creditors will be
paid. The Company is subject to proceedings under the Companies' Creditors
Arrangement Act (the "CCAA"). To facilitate the realization of the Company's
assets and the winding-up of the Company and its business, on March 3, 2008
Deloitte & Touche Inc. was appointed Monitor of the Company pursuant to the
Company's CCAA filing. In June 2008 the Company's Plan of Compromise or
Arrangement (the "Plan") was presented to the Company's creditors, who voted
in favour of accepting the Plan. As a result of the creditors' acceptance of
the Plan, a court order was obtained on June 26, 2008 whereby the Supreme
Court of British Columbia sanctioned the approval of the Plan.
    The Company's Plan called for distribution to occur to the proven
creditors upon assets being realized both in Canada as well as Hong Kong and
China. Upon receipt of an interim distribution from Ascalade Communications
Limited ("ACL") in November 2008, an interim distribution was completed to the
Company's creditor's equivalent to 80% for each proven dollar.
    The Monitor has received a further distribution from ACL and is in
position to pay the remaining 20% of the proven creditor's claims. This final
distribution represents a 100% payment of all proven creditors' claims, and
therefore there will be no further distributions to the creditors.
    The Company's only remaining significant unsold asset is the factory
located in the Peoples Republic of China ("the PRC"). This asset continues to
be listed for sale, and there has been an expression of interest with respect
to the purchase of the factory by two separate parties. The proposed purchase
price is significantly lower than ACL and the Scheme Administrator had
anticipated, as a result of the highly depressed market for factories in the
PRC, coupled with significant regulatory challenges surrounding exiting the
    In accordance with the Plan, any further distributions from ACL related
to the Company's pro-rata share from any potential future sale of the factory
would be distributed to shareholders and the Company would ultimately be wound
    Any recovery in the CCAA proceedings for shareholders is uncertain and is
highly dependent upon a number of factors, including the recovery from the
sale of the factory in the PRC and the outcome of the Scheme of Arrangement
for ACL in Hong Kong.

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