China Yida Holdings (CNYD)

[Lugheads1957]

8-K out.

http://biz.yahoo.com/e/060912/iysa.ob8-k.html




12-Sep-2006

Bankruptcy or Receivership, Financial Statements and Ex



Item 1.03 Bankruptcy or Receivership
As previously disclosed, on August 7, 2006, InteliSys Aviation Systems of America Inc. (the "Registrant") commenced a proceeding in the Queens Bench of the Province of New Brunswick, Canada (the "Queens Bench") for the purpose of restructuring its debts under the Canadian Bankruptcy and Insolvency Act. Such proceeding was commenced by the Registrant's filing of a Notice of Intention to make a settlement proposal to its creditors. Pursuant to such filing, the Registrant had thirty days from August 7, 2006 to make a proposal to its creditors for the settlement of debts owed to them by the Registrant. During the restructuring, the Registrant and its subsidiaries remain in possession and control of their respective assets. For further details relating to the such restructuring, reference is hereby made to the Registrant's Current Report on Form 8-K dated August 7, 2006, and filed with the Securities and Exchange Commission on August 10, 2006.

On August 31, 2006, the Registrant filed with the Queens Bench a proposal to make a settlement with its creditors pursuant to Section 50.4(1) of the Canadian Bankruptcy and Insolvency Act (the "Settlement Proposal"). In such Settlement Proposal, the Registrant proposed that its debts be settled as follows: (a) Secured creditors will be paid in accordance with the present arrangements existing between them and the Registrant, or as may be arranged between them and the Registrant. (b) Holders of preferred claims under the Canadian Bankruptcy and Insolvency Act will be paid by September 30, 2006. (c) Tax liabilities owed by the Registrant to the Canadian government will be paid within 90 days after the Settlement Proposal is approved by the Queens Bench. (d) Unsecured creditors will be paid by September 30, 2006. The Settlement Proposal is subject to approval by the Queens Bench.

For all the terms of the Settlement Proposal, reference is hereby made to such document annexed hereto as Exhibit 2.2. All statements made herein concerning the Settlement Proposal are qualified by references to said exhibit.