Look continues to face 'billing harassment' from Bell Canada
TORONTO, Nov. 7 /CNW/ - Unique Broadband Systems, Inc. (the "Company")
(TSX Venture: UBS) announced today that Look Communications Inc. ("Look") (TSX
Venture: LOK and LOK.A), its 51 per cent controlled subsidiary, has been
granted permission by the Ontario Superior Court of Justice 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 Look'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 Look of any or all of its major assets would result in proceeds to
Look of up to approximately $620 million being received on a tax-free basis,
thereby enhancing shareholder value and benefiting all stakeholders, including
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.
The Company is pleased with Justice Cumming's decision and, in addition
to Look complying with the Orders of the Court, Look will continue with the
implementation of the Plan.
About Unique Broadband Systems, Inc.
UBS is a publicly listed Canadian company that has a 51.6 per cent fully
diluted economic interest in Look Communications Inc. and other assets. With
its licensed spectrum through its subsidiary, Look, UBS is a Canadian digital
television broadcaster and broadband wireless service provider. The Company's
website may be found at www.uniquebroadband.com.
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 contains
forward-looking statements regarding future events and the future performance
of the Company that involves risks and uncertainties that could cause actual
results to differ materially. Assumptions used in the preparation of such
information, although considered reasonable by the Company at the time of
preparation may prove to be incorrect. The actual results achieved will vary
from the information provided herein and the variations may be material.
Consequently, there is no representation by UBS and 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,
E-mail: email@example.com, (403) 531-0331, (416) 586-0180