Update on Railpower's CCAA Restructuring Process

    TSX Symbol: P

    BROSSARD, QC, April 3 /CNW/ - Railpower Technologies Corp. (TSX: P)
provided today an update as to the current status of its efforts to develop a
comprehensive business restructuring plan for consideration by its creditors.
    Since Railpower obtained court protection under the Companies' Creditors
Arrangement Act (Canada) ("CCAA") on February 4, 2009, it has actively taken
steps, with the assistance of its financial and legal advisors, to review all
available strategic alternatives with respect to its restructuring plan,
including seeking prospective purchasers and investors. As part of such
process, Railpower has received certain expressions of interest from
prospective transaction partners, none of which is likely to enhance
recoveries for the creditors beyond liquidation value.
    In light of the foregoing, Railpower continues to consider alternatives,
which could include liquidation procedures. It is not anticipated that any
such liquidation procedures will generate any value for shareholders.
    The latest order issued by the Quebec Superior Court provided Railpower
with protection under the CCAA until April 7, 2009. During such period,
creditors and other third parties are stayed from taking action against
Railpower. Railpower is considering whether to seek an extension of the stay
of proceedings.
    Even if any such extension is obtained, Railpower intends to allow the
Toronto Stock Exchange ("TSX") to enforce any rights it may have as part of
its review of the eligibility for continued listing on the TSX of Railpower's
securities pursuant to its previously initiated expedited review process,
which will likely lead to the delisting of Railpower's securities on the TSX.
    While under CCAA protection, Railpower's board of directors maintains its
usual role and its management remains responsible for the day-to-day
operations of Railpower, under the supervision of the court-appointed monitor,
Ernst & Young Inc.

    About Railpower

    Railpower (TSX: P), (www.railpower.com) is engaged in the development,
construction, marketing and sales of high performance, clean locomotives and
power plants for the transportation and related industries. Railpower has
designed and is marketing a range of locomotives for the North American low
and medium horsepower locomotive market. It has also designed and is marketing
hybrid power plants for rubber tyred gantry cranes (Eco-Cranes(R)). Its
technologies have broader potential and applications in other markets and

    Caution regarding forward-looking statements

    Certain statements contained in this release contain forward-looking
statements. When used in this document, the words "may", "would", "could",
"will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and
similar expressions may be used to identify forward-looking statements. Those
statements reflect our current views with respect to future events or
conditions, including prospective results of operations, financial position,
and predictions of future actions, plans or strategies. Certain material
factors and assumptions were applied in drawing our conclusions and making
those forward looking statements. By their nature, those statements reflect
management's current views, beliefs and assumptions and are subject to certain
risks and uncertainties, known and unknown, including, without limitation, the
ability to secure new orders or new financing, our ability to secure the sale
of our securities or assets, our ability to comply with the covenants and
conditions contained in our outstanding convertible debentures with Ontario
Teachers Pension Plan Board, the ability to retain our employees, product
development or manufacturing delays, the ability of our current manufacturing
suppliers to meet our production demands in terms of quantity, quality and
costs, our ability to reach a satisfactory agreement with another supplier if
necessary or, the ability to restart the construction of our manufacturing
facility and if restarted, to construct our manufacturing facility on time and
within the forecasted budget, changing environmental regulations, the ability
to attract and retain business partners, the acceptance of our existing and
new products, future levels of government funding, the need to obtain and
maintain proprietary rights over our technology, competition from other
technologies or new competitors, the ability to access the capital required
for research, product development, operations and marketing, the need to
generate positive cash flow in the foreseeable future, potential legal
liability related to the recall of our Green Goat(R) locomotives, changes in
energy prices and currency levels. Further, actual results or events could
differ materially from those contemplated in forward-looking statements as a
result of the risks and uncertainties relating to the CCAA and Chapter 15
proceedings (collectively, the "Insolvency Proceedings") including: any
negative impacts on the Corporation's business, results of operations,
financial position, cash management arrangements and limitations on the
Corporation's ability to freely deploy its cash resources throughout the
company; relationships with employees, customers, creditors, suppliers and
other stakeholders resulting from the Insolvency Proceedings; the failure of
the Corporation or its U.S. subsidiary (collectively, the "Applicants") to
obtain subsequent court orders extending the applicable stays of actions and
proceedings against the Applicants to permit them to propose a restructuring
plan to affected creditors; the adequacy of the Corporation's available cash
on hand to fund its ongoing operations or ability to arrange for sufficient
alternative debtor-in-possession financing during the Insolvency Proceedings;
the failure of the Corporation to obtain the requisite approvals of affected
creditors or the courts for any restructuring plan, or to successfully
implement such a plan or obtain sufficient exit financing, if required, within
the time granted by any court, which could result in substantially all of its
debt obligations becoming immediately due and payable or subject to immediate
acceleration, leading to the likely liquidation of the Applicants' assets;
that the Corporation's existing securities could have no material value in,
and following the approval of, a restructuring plan and could be cancelled;
and the potential that the Toronto Stock Exchange may suspend trading or
delist the Corporation's securities on or from such stock exchange as a result
of the Insolvency Proceedings. Many factors could cause our actual results,
performance or achievements to be materially different from any future
results, performance or achievements that may be expressed or implied by these
forward-looking statements. Should one or more of these risks or uncertainties
materialize, or should the assumptions underlying our projections or
forward-looking statements prove incorrect, our actual results may vary
materially from those described in this report as intended, planned,
anticipated, believed, estimated, or expected. Unless otherwise required by
law, we do not intend or do not assume any obligation to update these
forward-looking statements whether as a result of new information, plans,
events or otherwise.

For further information:

For further information: Kamila Wirpszo, Vice-President, General Counsel
and Corporate Secretary, Railpower Technologies Corp., Tel: (450) 678-5277
ext.518, Toll Free: 1-866-678-5277, Email: kwirpszo@railpower.com

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