CALGARY, March 31 /CNW/ - Winalta Inc. (TSX-V - "WTA.A") ("Winalta" or the "Company") announces that Winalta, together with its subsidiary companies (Winalta Homes Inc., Winalta Carriers Inc., Winalta Oilfield Rentals Inc., Winalta Carlton Homes Inc., Winalta Industrial Inc., Winalta Holdings Inc., Winalta Construction Inc., Baywood Property Management Inc. and 916830 Alberta Inc.) have received demands for payment (the "Demands") and Notices of Intention to Enforce Security (the "Notices") from the Company's principal lender, HSBC Bank of Canada ("HSBC"). Pursuant to the Demands, HSBC has demanded payment of approximately $46 million of indebtedness owing by Winalta and its subsidiaries to HSBC under various loans and guarantees.
Under the terms of the Demands and the Notices, Winalta and its subsidiaries have 10 days to make payment of their outstanding indebtedness, failing which HSBC may take legal action to enforce its security under the applicable loan and security documentation.
The Board of Directors of Winalta is reviewing the Demands and the Notices and is seeking legal advice with respect to its rights and obligations in this regard. Winalta also intends to continue discussions with HSBC regarding these events.
Winalta Inc. is an integrated company with three main operating divisions, Homes, Industrial, and Manufacturing. The Homes Division sells CSA approved homes via retail centers, communities and supply arrangements. The Industrial Division leases portable industrial accommodations and provides construction services that include excavating, aggregate trucking and paving. The Manufacturing Division builds CSA approved homes and portable industrial accommodations from facilities near Spruce Grove, Alberta.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
The words "believe", "expect", "intend", "anticipate", or any variation of such words and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Winalta undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by securities laws.
SOURCE Winalta Inc.
For further information: For further information: Ron Berg, President & CEO, Winalta Inc., Tel: (780) 960-6900, Fax: (780) 962-9523; Austin Fraser, VP Corporate Development and Investor Relations, Tel: (403) 475-4698