TORONTO, June 26 /CNW/ - Nexient Learning Inc. (NEX: NXL.H) announced
today that it has applied for creditor protection under the Companies'
Creditors Arrangement Act (Canada) ("CCAA") in the Ontario Superior Court of
Justice. The CCAA filing is a necessary step to allow Nexient to conduct a
marketing and sale process of its assets and to provide financing to allow
Nexient to continue to operate without disruption.
Nexient intends to bring an application in the very near future seeking
approval of a stalking horse offer in the sale process. The stalking horse
bidder intends to acquire Nexient's business and assets and to continue
It was determined by the Board of Directors that as a result of Nexient's
current financial difficulties seeking CCAA protection would enable Nexient to
expeditiously complete the strategic process it initiated some time ago. The
Board believes the filing is in the best interests of Nexient and all of its
stakeholders. The CCAA protection will stay creditors, suppliers and others
from enforcing any rights against Nexient and will afford Nexient the
opportunity to restructure its affairs.
While under CCAA protection Nexient will continue with its day-to-day
operations and will continue with its efforts to pursue strategic alternatives
under the leadership of its existing management team. Nexient has made
arrangements with Vengrowth, one of its current lenders, to provide funds to
support the ongoing operations.
Nexient intends to ask the court to approve RSM Richter Inc, as Monitor
for the CCAA proceedings to monitor ongoing operations, assist with the filing
of a plan and to report to the Court. Nexient has also requested that the NEX
halt trading on its common shares.
It is also with regret that Nexient's Board of Directors announces that
Stuart Bentley, George Unsworth and Mark McQueen have resigned from the Board
of Directors effective June 24, 2009. Peter Carrescia and Graham McBride of
VenGrowth have resigned from the Board of Directors effective June 26, 2009.
Nexient thanks these board members for their years of service and wishes them
success in the future.
About Nexient Learning Inc.
Nexient Learning Inc. is the largest corporate training and talent
development company in Canada. Nexient delivers the broadest choice of top
calibre, industry-recognized curricula in information technology, business
process improvement and leadership business solutions. With 12 locations
across Canada, Nexient offers innovative learning solutions in both classroom
and online formats. Nexient is traded on the NEX as "NXL.H". More information
is available on the company's website at www.nexientlearning.com.
Forward Looking Statements
This press release contains forward-looking statements. Forward-looking
statements involve known and unknown risks, uncertainties and other factors
including economic conditions which may cause the actual results, performance
or achievements of Nexient to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
statements. Actual results could differ materially from those projected and
should not be relied upon as a prediction of future events. These statements
include without limitation those relating to the selling or restructuring of
Nexient or its assets, the borrowing of additional funds, continuing with
day-to-day operations and completing other strategic alternatives. By its
nature, this information is subject to inherent risks and uncertainties that
may be general or specific, including without limitation finding a suitable
buyer or partner, obtaining suitable financing or obtaining court or other
necessary approvals. A variety of material factors, many of which are beyond
Nexient's control, affect the operations, performance and results of Nexient,
and could cause actual results to differ materially from current expectations
of estimated or anticipated events or results. The Company specifically
disclaims any obligation to update these forward-looking statements, except as
required by applicable securities laws. There can be no assurance that
forward-looking statements will prove to be accurate and readers should not
place undue reliance on forward-looking statements.
The NEX Exchange has neither approved nor disapproved the contents of
this press release.
For further information:
For further information: Douglas Lawson, Chief Financial Officer,
Nexient Learning Inc., (416) 964-8688 ext. 2200, firstname.lastname@example.org