Look continues to face 'billing harassment' from Bell Canada
TORONTO and MONTREAL, Nov. 7 /CNW/ - Look Communications Inc. (TSX
Venture: LOK and LOK.A) ("Look" or the "Corporation") announced today that the
Ontario Superior Court of Justice has granted the Corporation permission to
proceed with the transfer of assets thereby allowing Look to proceed with its
Reorganization Plan (the "Plan"), previously announced on October 10th, 2007.
The opposition by Bell Canada ("Bell") to the transfer of these assets was
jeopardizing the Plan, which allowed for the maintenance of the Corporation's
deferred tax assets.
In spite of the benefits, Bell continued its very consistent behaviour of
harassment and, accordingly, Look was once again forced to go to the Ontario
Superior Court of Justice to have the asset transfer approved thereby
permitting the Plan to proceed. As a result, Look was required to present
arguments against Bell's position to prevent aspects of the Plan from being
Look had previously offered to have the July 31st, 2007 Injunction Order
(the "July 31 Order") apply verbatim to the new entity, but this offer was
rejected by Bell for reasons unbeknownst to Look. Following the Order made by
the Court on November 7th, 2007, Bell is in the same position economically
that it was before the Order was made.
Look can now start the process to implement the Plan which, when
completed, maintains approximately $310 million of its losses. As a result,
the sale by the Corporation of any or all of its major assets would result in
proceeds to the Corporation of up to approximately $620 million being received
on a tax-free basis, thereby enhancing shareholder value and benefiting all
stakeholders, including Bell.
In addition to Bell's legal manoeuvrings and opposition to aspects of the
Plan, Bell has knowingly continued to excessively and incorrectly invoice Look
for more than double the terms of the July 31 Order of $360,000 per month.
Look believes these deliberate and erroneous billings are a form of Bell's
continuous harassment of Look.
Look is pleased with Justice Cumming's decision and, in addition to
complying with the Orders of the Court, will continue the Corporation's
implementation of the Plan.
About Look Communications Inc.
Look's mission is to be an M(3) - Mobile Multi Media - entertainment and
information service provider in Ontario and Québec. The Corporation currently
delivers a full range of communications services, including high-speed and
dial-up Internet access, Web applications, digital television distribution,
and superior customer service to both the business and residential markets.
Look's shares are listed on the TSX Venture Exchange under the symbols "LOK"
for Multiple Voting Shares and "LOK.A" for Subordinate Voting Shares. Look's
website may be found at www.look.ca.
The corporate information contained in this release includes
forward-looking statements regarding future events and the future performance
of Look that involve risks and uncertainties that could cause actual results
to differ materially. Assumptions used in the preparation of such information,
although considered reasonable by Look at the time of preparation, may prove
to be incorrect. The actual results achieved may vary from the information
provided herein and the variations may be material. Consequently, there is no
representation by Look that actual results achieved will be the same in whole
or in part as those forecasts.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Peter Block, Investor and Media Relations,
email@example.com, (403) 531-0331, (416) 586-0180