OTTAWA,
ON, April 29, 2022 /CNW/ - Clearford Water
Systems Inc. (TSXV: CLI) ("Clearford" or the
"Company") announces that on April
28, 2022 it filed a Notice of Intention to Make a Proposal
("Notice") pursuant to the provisions of Part III of the
Bankruptcy and Insolvency Act (Canada) (the "BIA").
Pursuant to the Notice, KSV Restructuring Inc. has been
appointed as the proposal trustee (the "Trustee") and will
assist the Company in its restructuring efforts. This filing
follows the Company's ongoing strategic review of its options
previously announced in its news release of March 23, 2020.
The filing of the Notice has the effect of imposing a 30-day
statutory stay of proceedings that will protect the Company and its
assets from enforcement actions. During this period, the Company
expects to file a formal proposal under the BIA (the
"Proposal"), setting forth a comprehensive plan for payment
to the Company's creditors in due course.
The Company has taken this action under the BIA as the most
expeditious and economical manner of addressing the interests of
its creditors and allowing it to carry on its operations
uninterrupted. Only Clearford Water Systems Inc. intends to file a
Proposal, and its subsidiaries, including Clearford Waterworks Inc.
will not be subject to the Proposal process. All of Clearford's
subsidiaries will continue to operate in the ordinary course.
Management will work closely with the Company's board of
directors and its financial and other advisors and, with the
assistance of the Trustee, to maximize the realizable value of the
Company's residual assets.
There can be no assurance that the process will result in the
Company realizing any value in the Company's residual assets in any
transaction or, if a transaction is proposed, that it will be
successfully concluded in a timely manner or at all.
Failure by the Company to achieve its restructuring objectives
through an approved Proposal will result in the Company becoming
bankrupt.
Trading in the Company's common shares on the TSX Venture
Exchange ("TSX-V") has been halted. There is no certainty as
to timing or likelihood that the common shares will recommence
trading on the TSX-V.
About Clearford Water Systems
Inc.
Clearford Water Systems is a provider of unified water
management solutions for the design, deployment, finance and
operation of water infrastructure systems. Clearford is one of the
largest operators of private water and wastewater systems in
Ontario with over 260 sites across
the province. Our diverse team of licensed engineers, certified
operators and technical staff provide total solutions that meet the
water management needs of owners, property managers, and
communities. In-house personnel include designers and technical
specialists in, water and wastewater, engineering, compliance &
regulations, construction services, and health & safety.
The Company's technology-based water solutions include Clearford
One® wastewater infrastructure systems, and a full range of UV
Pure® water disinfection products. Clearford is the winner of the
Frost & Sullivan 2017 Enabling Technology Leadership Award for
Global Decentralized Water & Wastewater Treatment. For more
information, visit www.clearford.com.
Forward Looking
Statement
This news release includes certain "forward-looking statements"
under applicable Canadian securities legislation that are not
historical facts. Forward-looking statements involve risks,
uncertainties, and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Forward-looking statements can be identified by words such as:
"anticipate," "expect," "likely," "plan," "will" and similar
references to future periods. Forward-looking statements in this
news release include, but are not limited to, statements regarding
the Company's ability to realize value of its assets, complete a
creditor proposal, bankruptcy, or complete a restructuring. The
statements are dependent on a number of assumptions and risk
factors. Consequently, all of the forward-looking statements made
in this press release are qualified by these cautionary statements
and other cautionary statements or factors contained herein, and
there can be no assurance that the actual results or developments
will be realized or, even if substantially realized, that they will
have the expected effects on the Company. These forward-looking
statements are made as of the date of this press release. Except as
required by applicable securities legislation, the Company assumes
no obligation to update publicly or revise any forward-looking
statements to reflect subsequent information, events, or
circumstances.
Neither the 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.
SOURCE Clearford Water Systems Inc.
