TORONTO, Feb. 7, 2012 /CNW/ - Unique Broadband Systems, Inc. ("UBS" or the "Company") (TSX Venture: UBS) announces that it has today served a motion (the "Motion") in the proceedings under the Companies' Creditors Arrangement Act ("CCAA") seeking a determination as to whether the partial take over bid by 2064818 Ontario Inc., a company controlled by Mr. Alex Dolgonos, for 10,000,000 common shares representing only 10% of the Company's issued and outstanding common shares (the "Dolgonos Bid") is stayed by the initial order made in the CCAA proceedings on July 5, 2011 and, if it is not, seeking an order to stay the Dolgonos Bid.
The proceedings under the CCAA were commenced for the purpose of developing and pursuing a plan of reorganization for the Company that is in the best interests of all of the Company's creditors and shareholders, including instituting an expedited process to determine the validity and quantum of, among other things, the approximately $8 million of claims by affiliates of Dolgonos (the "Claims") that are disputed by UBS. The board of directors of UBS believes that the best interests of all stakeholders will be served through the uninterrupted determination of all disputed claims (including the Dolgonos Claims) on their merits in the CCAA proceedings in the most efficient and cost-effective manner. In this respect, the Motion also seeks an order staying the holding of a meeting of UBS shareholders to replace the board until such time as the Claims have been determined under the CCAA proceedings.
The board of directors of UBS urges its shareholders not to respond to the Dolgonos Bid pending the determination of the Motion and further communications to shareholders.
About Unique Broadband Systems, Inc.
UBS's shares are listed on the TSX Venture Exchange under the symbols "UBS". More information on UBS can be found at www.sedar.com.
The corporate information contained in this release includes forward-looking statements regarding future events and costs 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 UBS 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 UBS that actual results achieved will be the same in whole or in part as those forecast.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information:
Grant McCutcheon, CEO