/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER US NEWSWIRES/
CALGARY, Jan. 13 /CNW/ - As previously reported, WellPoint Systems Inc.
(TSX-V:WPS) ("WellPoint Systems" or the "Company") entered into
amending agreements with its bank (the "Bank") in respect of its
working capital credit facility (the "Credit Facility"), which was due
to expire on August 2, 2010. The amendments extended the maturity of
the Credit Facility to November 30, 2010.
The Company advises that after significant discussions with the Bank
both prior to and subsequent to November 30, 2010, the Bank has
provided notice that an event of default has occurred under the Credit
Facility and that all outstanding obligations under the Credit Facility
shall accrue interest at the applicable default interest rate. The Bank
confirmed, however, that it is not currently demanding payment of the
whole or any part of the amounts owing under the Credit Facility, nor
is the Bank exercising any of its rights or remedies of enforcement or
collection under any of the security granted in connection with the
Credit Facility. While the Bank has advised the Company that the
foregoing statements represent its current intention, the Bank has
advised that it continues to reserve all of its rights and remedies
with respect to events of default.
The Company previously reported that it had similarly entered into
consents and waivers with the holders of its outstanding convertible
debentures, whereby such holders agreed that the failure by the Company
to make scheduled interest payments would not be an event of default
under these debentures. The notice of default provided by the Bank,
however, constitutes an event of default (cross-default) under these
The Company continues to work with the Bank and the debentureholders to
seek solutions to its overdue and future debt servicing obligations.
There can be no assurance, however, that the Company will be able to
reach agreement with the Bank and the debentureholders, and if
agreement is not reached, the events of default could result in the
Company's creditors taking action to enforce the security that they
hold. The Company does not have the current financial ability to
satisfy these outstanding financial obligations should they become due.
About WellPoint Systems Inc.
WellPoint Systems delivers software solutions and services that
transform complex data into Business Insight for more than 450
companies in 60 countries worldwide. WellPoint Systems is recognized as
a leader in providing Financial, Energy Marketing and Trading solutions
to the Oil and Gas industry with its award winning BOLO, IDEAS, Energy
Financial Management and Energy Broker products.
Founded in 1997, Calgary-based WellPoint Systems is publicly traded on
the TSX Venture Exchange under the symbol WPS. Visit www.wellpointsystems.com for more information.
Neither 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
Forward-Looking Statements: This news release contains certain "forward-looking statements" within
the meaning of such statements under applicable securities law.
Forward-looking statements are frequently characterized by words such
as "plan", "continue", "expect", "project", "intend", "believe",
"anticipate", "estimate", "may", "will", "potential", "proposed" and
other similar words, or statements that certain events or conditions
"may" or "will" occur. These statements are only predictions. Various
assumptions were used in drawing the conclusions or making the
projections contained in the forward-looking statements throughout this
news release. Forward-looking statements are based on the opinions and
estimates of management at the date the statements are made, and are
subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
projected in the forward-looking statements, such as the failure of the
Company to restructure its debt on terms acceptable to the Company.
For a detailed description of the risks and uncertainties facing the
Company and its business and affairs, readers should refer to the
Company's interim and annual financial statements and management
discussion and analysis which are available at www.sedar.com. The
Company undertakes no obligation to update forward-looking statements
if circumstances or management's estimates or opinions should change,
unless required by law. The reader is cautioned not to place undue
reliance on forward-looking statements.
SOURCE WellPoint Systems Inc.
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