EastCoal Inc Court Approval of Proposal (8108H)
May 22 2014 - 4:03AM
UK Regulatory
TIDMECX
RNS Number : 8108H
EastCoal Inc
22 May 2014
EASTCOAL ANNOUNCES COURT APPROVAL OF PROPOSAL
EastCoal Inc. (NEX: ECX.H, AIM: ECX) ("EastCoal" or the
"Company") previously announced on April 23, 2014 that at a meeting
of its creditors held on April 22, 2014 it had received creditor
approval for the Company's proposal (the "Proposal") to its
creditors pursuant to the Bankruptcy and Insolvency Act (Canada)
(the "BIA"). The Company is now pleased to announce that on May 20,
2014 the proposal trustee, Deloitte Restructuring Inc. (the
"Proposal Trustee") and the Company were granted an order from the
Supreme Court of British Columbia approving the Proposal and the
associated transactions identified below (the "Transactions").
Assuming the Transactions complete within the expected time
frames, the Company anticipates completing the terms the Proposal
in June 2014.
In connection with the implementation of the Proposal, the
Company will effect a share consolidation of its issued and
outstanding common shares. The consolidation is proposed to be on a
ratio of ten (10) pre-consolidation common shares to one (1)
post-consolidation common shares, consolidating the Company's
72,804,853 issued and outstanding common shares to 7,280,485 common
shares following the consolidation.
In connection with the implementation of the Proposal the
Company has also entered into conditional share subscription
agreements with a group of investors. Such investors will acquire,
on a private placement basis, approximately 95% (or 140,000,000
common shares on a post-consolidated basis) of the Company's issued
and outstanding share capital at a subscription price of Cdn$0.005
per share for total aggregate proceeds of an amount not less than
Cdn$700,000.
A portion of the proceeds from the private placement, being
Cdn$450,000, will be used to fund a payment to proven unsecured
creditors in accordance with the terms of the Proposal. As agreed
with the Company's sole secured creditor, the Company's
indebtedness to such creditor will be extended for a year subject
to certain loan conversion rights being granted to the
creditor.
Inquiries regarding the Proposal and the BIA proceeding should
be directed to the Proposal Trustee (Paul Chambers +1 604 640
3368). A copy of the Proposal is available on the website of the
Proposal Trustee at www.deloitte.com/ca/eastcoal.
Forward-Looking Statements: This news release contains
discussion of items that may constitute forward-looking statements
within the meaning of securities laws that involve risks and
uncertainties. Although the Company believes the expectations
reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurances that its
expectations will be achieved. In particular, the statement
regarding the expected completion of the Proposal is or involves a
forward-looking statement. This statement reflects management's
expectations as of the date of this press release regarding the
Company's future financial performance and should not be read as
guarantees of future performance or results. Factors that could
cause actual results to differ materially from expectations include
the effects of general economic conditions, actions by government
authorities and courts and actions by stock exchanges, stakeholders
of the Company or regulatory authorities.
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.
Contacts:
EastCoal Inc.
Abraham Jonker, President +1 (604) 681-8069
Cenkos Securities plc
Alan Stewart/Derrick Lee +44 (0) 131 220 6939
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCPGUGUAUPCUBP
Eastcoal (LSE:ECX)
Historical Stock Chart
From Apr 2024 to May 2024
Eastcoal (LSE:ECX)
Historical Stock Chart
From May 2023 to May 2024