Orbite Technologies Inc. (NEX: ORT.H) (“Orbite” or the “Company”) today provided an update on its plan to emerge from CCAA protection.
Definitions of the capitalized terms used herein can be found at the end of this press release.
CCAA Court extends the Stay Period
As announced on June6, 2019, the CCAA Court issued an order pursuant to the CCAA providing for a Stay Period until August 16, 2019.
On August15, 2019the CCAA Court granted a motion filed by the Company and issued an order extending the Stay Period until September13, 2019.
According to the Company’s cash flow projections filed with the CCAA Court, the cost reduction measures announced by the Company on June 21, 2019 and implemented thereafter, have allowed the Company to extend its cash flow until September 15, 2019.
Sale and Investment Solicitation Process (SISP)
As announced on June 21, 2019, a SISP was launched on July 9, 2019. The interested parties had until August 9, 2019to file a bid with the Monitor. During the SISP, 215 entities were approached by the Monitor and confidentiality agreements were entered into with 12 of them. In addition, 4 entities visited the HPA Plant and/or the TDC with representatives of the Company.The Monitor, in concert with Orbite, opened the bids received on August 9, 2019. Requests for clarifications have been sent to some of the bidders in order to determine the best option for all the creditors and other stakeholders.The Company will provide further updates as developments occur.There can be no guarantees that the Company will otherwise be successful in its restructuring efforts and will emerge from CCAA protection.
Definitions
CCAA: Companies’ Creditors Arrangement Act.
CCAA Court: Quebec Superior Court.HPA Plant: the Company’s high purity alumina (HPA) plant, in Cap-Chat, Québec.
Monitor: Pricewaterhouse Coopers Inc.
TDC: Technology Development Center of the Company in Laval