(TSX - V: UZZ)
EDMONTON, March 6, 2013 /CNW/ - F.V.Ramsoondar, President and Chief Executive Officer of United Protection Security Group Inc. ("UPSG" or the "Company"), (TSX-V: UZZ) announces the following update:
Pursuant to the notes in the Company's Audited Financial Statements for the year ended December 31, 2011, the Company disclosed the following:
A claim was recorded against the Company which exceeds the amount of its insurance coverage. The claim arose from the destruction by fire of a large construction project in Edmonton, Alberta. In December 2007, a claim was filed against the Company for alleged non-performance in meeting the plaintiff's insurance requirements. In 2009, the claim was amended to $14 million and, in the same year, a second action was commenced by the same plaintiff for the same amount for alleged negligent performance of service delivery.
The Company's insurer, in conjunction with the Company, believes that the claims are without merit. The claims are being vigorously defended. No provision for loss has been recorded and a loss, if any, will be recorded when determined.
The Company is pleased to announce that the plaintiff has now discontinued the second action, in which negligent performance of service delivery was alleged, by way of a formal Discontinuance of Action filed in the Court of Queen's Bench of Alberta.
Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks related to business development and retention, and risks related to the current economic and credit conditions. As a result, actual results may vary materially from those described in the forward-looking statements.
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.
SOURCE: United Protection Security Group Inc.
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Fredy Ramsoondar CEO and Director