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December 26, 2007 |
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ALDEAVISION SOLUTIONS: Files Plan of Arrangement Under CCAA AldeaVision Solutions Inc. said that after careful consideration of available alternatives, the board of directors of the company, which has been hampered by market, operational and financial challenges, has determined that it is in the best interests of all of its stakeholders to file a plan of arrangement and reorganization under the Companies' Creditors Arrangement Act (Canada) and the Canada Business Corporations Act (Canada). As a consequence, a motion was filed on Dec. 20, 2007, seeking the sanction of the plan with the Quebec Superior Court. The plan will affect the company's shareholders, debenture holders and its secured creditor. Given the prior approval of the debenture holders and the secured creditor, no stay of proceedings is being sought. Accordingly, the company has filed the plan directly and is requesting its immediate sanction by the Court. All other creditors remain unaffected and the Company's day-to-day business will continue undisturbed. The Plan includes, among others, these transactions: -- the cancellation and write-off of issued and outstanding common shares of the Company; -- the cancellation of issued and outstanding stock options issued under the company's stock option plan and the cancellation of the plan; -- the issuance of 3,570,000 new Class A common shares of the company to certain existing creditors of the company; -- the cancellation and discharge of convertible debentures issued to Miralta Capital II Inc., Almiria Capital Corp. and GTR Capital Inc. without any payment or other consideration; -- the cancellation and discharge of convertible debentures issued to Capital Regional et Cooperatif Desjardins and Desjardins Capital de Developpement Montreal Ouest et Nord du Quebec Inc. in exchange for 170,000 Class A common shares; -- the granting to Desjardins of an option to subscribe an additional 200,000 Class A common shares at a price of US$1.00 per share which option is set to expire on the later of: (i) 90 days following the closing date of the plan; or (ii) April 30, 2008; -- the cancellation and discharge of the US$900,000 short- term credit facility granted by Almiria to the company in exchange for 900,000 Class A common shares; -- the cancellation and discharge of all other remaining debt in the aggregate amount of US$3 750 000 owed by the company to Almiria in exchange for 2,000,000 Class A common shares; and -- the subscription by Almiria of 500,000 Class A common shares for an aggregate subscription price of US$500,000. If the plan is approved by the Court, the company will cease to be a reporting issuer in all Canadian provinces and its common shares will be delisted from the TSX Venture Exchange. Following the Court's approval, the transactions contemplated in the plan and filing of the company's articles of reorganization will occur on or before Jan. 15, 2008. In the event that the Court does not approve the plan, the board of directors will review other available options including placing the company into receivership or bankruptcy. About AldeaVision Solutions Montreal-based AldeaVision Solutions Inc. (TSX Venture: AVS) -- http://www.aldeavision.com/ -- provides broadcast video services and solutions for the television, film and media industries. The company provides end-to-end worldwide transmissions services using fiber and satellite facilities. The company also operates the first pan-American fully automated fiber-based network for broadcast services with points-of-service in 16 cities and 9 countries: Miami, New York, Washington D.C, Los Angeles, Boston, Toronto, Montreal, Mexico City, Guadalajara (Mexico), Lima (Peru), Rio de Janeiro (Brazil), Sao Paulo (Brazil), Santiago (Chile), Buenos Aires (Argentina), Bogota, (Colombia), and Madrid (Spain). |
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