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 debentures.

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.

For further information:

Richard Slack   Hervé Seguin, CMA, CGA
President and Chief Executive Officer Chief Financial Officer
(303) 987-2238   (647) 346 6158
rick.slack@wellpointsystems.com   herve.seguin@wellpointsystems.com

Organization Profile

WellPoint Systems Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890