Court Grants 1608557 Ontario Inc. Further Stay Extension and authorizes the Receiver to file Amended CCAA Plan

    TORONTO, June 2 /CNW/ - PricewaterhouseCoopers Inc. in its capacity as
interim receiver (the "Receiver") of the assets, property and undertaking of
1608557 Ontario Inc. (formerly known as Hemosol Corp.) and its affiliate
Hemosol LP (collectively, "1608557") today announced that the Ontario Superior
Court of Justice (the "Court") granted an order dated May 30, 2008, amongst
other things authorizing (but not obligating), the Receiver to file an amended
plan of compromise and arrangement for 1608557's creditors (the "Amended
Plan") and approving the procedures pursuant to which, if such Amended Plan is
filed, the Receiver would reconvene meetings of creditors for the purposes of
considering and voting on the Amended Plan. The Court also granted a further
extension of the stay of proceedings against 1608557. The current Companies'
Creditors Arrangement Act stay of proceedings will now expire on August 15,
    It is uncertain at this time whether an Amended Plan will actually be
filed. However, if an Amended Plan is filed and approved by the requisite
majorities of 1608557's creditors, it is anticipated that it will result in a
substantial dilution or cancellation of the pre-restructuring shares of

    Certain statements concerning 1608557's future prospects are
"forward-looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and other applicable securities
legislation. There can be no assurances that future results will be achieved,
and actual results could differ materially from forecasts and estimates.
Important factors that could cause actual results to differ materially from
forecasts and estimates include, but are not limited to: 1608557's continued
viability as a going concern; the risk that 1608557 may not become profitable;
the Receiver's ability to complete a transaction pursuant to the terms of the
Order; and other factors set forth in filings with Canadian securities
regulatory authorities and the U.S. Securities and Exchange Commission. These
risks and uncertainties, as well as others, are discussed in greater detail in
the filings of 1608557 with Canadian securities regulatory authorities and the
U.S. Securities and Exchange Commission. 1608557 makes no commitment to revise
or update any forward-looking statements in order to reflect events or
circumstances after the date any such statement is made.

For further information:

For further information: Information in respect of the receivership is
available at

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1608557 ONTARIO INC.

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