/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE
CALGARY, Oct. 14 /CNW/ - EarthFirst Canada Inc. ("EarthFirst" or the "Company") is pleased to announce that the Affected Creditor's Plan of Arrangement (the "Plan") was approved at a meeting of Affected Creditors which occurred earlier today. Affected Creditors, present at the meeting in person or by proxy voted 100% in favour of accepting the proposed Creditor's Plan of Arrangement both by number of creditors and the value of claims they represented.
It is anticipated that Affected Creditors will receive an initial distribution shortly after the sale of the Dokie I project closes, which is anticipated to occur in early November, 2009. If the amalgamation with Maxim Power Inc. is completed as previously announced, then Affected Creditors will receive an additional distribution in the first quarter of 2010.
On October 13, 2009, EarthFirst obtained an Order of the Court of Queen's Bench of Alberta, Judicial Centre of Calgary (the "Court") relating to its ongoing CCAA process, which provided for:
1. Approval for some minor amendments to the Plan including naming
the Maxim Power transaction discussed above in the Plan;
2. Declaring that the shareholders of EarthFirst do not have any
economic interest in the Plan (as amended by the Amended Plan) and
accordingly the shareholders of EarthFirst shall not be entitled
to vote either at the Creditors' Meeting, nor at any subsequent
Shareholder's meeting, nor otherwise.
As a result of this Order and consistent with prior announcements, there will not be any recovery for EarthFirst's shareholders arising out of the CCAA process and EarthFirst does not expect its common shares and warrants to resume trading on the Toronto Stock Exchange.
Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities legislation including the timing and continuance of CCAA protection. Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of EarthFirst to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Specifically, some of the material risks include the uncertainty involved in the Court proceedings, the uncertainty of closing the above noted transactions and the implementation of a Plan under the CCAA.
The forward-looking information contained in this news release represents the expectations of EarthFirst as at October 14, 2009, and, accordingly, is subject to change after such date. However, EarthFirst expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE EARTHFIRST CANADA INC.
For further information: For further information: Brian Trypka, Chief Restructuring Officer, EarthFirst Canada Inc., Tel: (403) 513-0780, Toll Free: (877) 513-0777, E-mail: firstname.lastname@example.org; Derren Newell, VP, Finance and Chief Financial Officer, EarthFirst Canada Inc., Tel: (403) 513-0766, Toll Free: (877) 513-0777, E-mail: email@example.com