Clearford Water Systems Inc. Files a Notice of Intention to Make a Proposal under the BIA
Ottawa, Ontario – (April 29, 2022) –Clearford Water Systems Inc. (“Clearford” or the “Company”), (TSXV: CLI), 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.
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.
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.