OTTAWA, Feb. 10, 2015 /CNW/ - Plasco Energy Group Inc. ("Plasco", together with its affiliates, the "Company") announced today that it has obtained an order (the "Initial Order") from the Ontario Superior Court of Justice (Commercial List) approving the Company's application under the Companies' Creditors Arrangement Act (the "CCAA"). The Company's CCAA proceedings will, among other things, provide the Company with time and stability to explore potential strategic alternatives that may be available to the Company.
Plasco is a pre-revenue, development stage technology company that requires additional time and funding to refine and commercialize its waste conversion technology. Plasco has engaged Houlihan Lokey Capital, Inc. as its financial advisor to assist the Company in identifying potential purchasers of or investors in the business.
Under the Initial Order, among other things, the Company was granted a stay of proceedings, staying creditor claims against Plasco and its subsidiaries during the CCAA process, and Ernst & Young Inc. was appointed as the monitor (the "Monitor") of the Company in the proceedings.
In conjunction with the CCAA proceedings, Plasco will be implementing certain cash conservation measures. The Company has sufficient funds to finance its working capital requirements at this time and will continue to make post-filing payments to its suppliers and service providers in the normal course.
Plasco management will remain responsible for the day-to-day operations of the Company. Plasco has also engaged Randall Benson, Partner & National Practice Co-Leader, Restructuring and Turnaround, KPMG, as Chief Restructuring Officer to assist the Company with its restructuring process.
"Plasco will explore potential strategic alternatives that may provide the Company the funding required to pursue commercial development of its technology," said Mr. Benson. "Our key objectives are to preserve the value of the business for the benefit of the Company's stakeholders and to continue work towards demonstrating the performance of the technology."
Additional information regarding the Company's CCAA proceedings, including court materials, will be made publicly available on the Monitor's website at http://documentcentre.eycan.com. Plasco will provide further updates throughout its restructuring process.
About Plasco Energy Group Inc.
Plasco Energy Group Inc. is an innovative technology company based in Ottawa, Canada. Plasco's conversion technology is a sustainable solution that helps communities achieve their landfill diversion and renewable energy goals. Plasco recovers the highest value from post-recycled waste and significantly reduces the negative impact waste has on the environment.
The Plasco Conversion System is the result of over 30 years of experience with plasma technologies. Decades of research and development have been invested to develop breakthrough performance both economically and environmentally. Since 1986, we have operated research facilities in Ottawa and Spain where our process has been continuously tested and refined.
SOURCE Plasco Energy Group Inc.
For further information: Plasco Energy Group Inc., (613) 591-9438 ext. 1355; Media contact: Joel Shaffer, Longview Communications, (416) 649-8006