October 31, 2017
Orbite Provides Corporate Update
MONTREAL, QUEBEC--(Marketwired - Oct. 31, 2017) - Orbite Technologies Inc. (NEX:ORT.H) ("Orbite" or the "Company") today provided an update on its continuing efforts to emerge from insolvency protection for the benefit all of its stakeholders.
CCAA Court extends the Stay Period and approves the release of the remaining $2 million of the DIP Financing
As announced on August 2, 2017, the Superior Court of Quebec (the "CCAA Court") issued a second amended and restated initial order pursuant to the Companies' Creditors Arrangement Act ("CCAA") providing for a stay of all proceedings until October 31, 2017 (the "Stay Period"). On October 30, the CCAA Court granted a motion filed by the Company and issued the following orders:
-- extending the Stay Period until January 31, 2018;
-- relieving Orbite from its obligation to call the annual meeting of
shareholders on or before January 31, 2018 and directing Orbite to call
such annual meeting, as the case may be, by April 27, 2018;
-- establishing a claims procedure for claims against the Company; and
-- directing PricewaterhouseCoopers, to release the balance of the Debtor
in Possession ("DIP") financing representing an amount of $2,037,666, to
be used by the Company in accordance with the terms and conditions of
the DIP financing and the August 1, 2017 court order.
Based on the cashflow projections filed by Orbite with the CCAA Court, the Company expects to have liquidities until the week of April 22, 2018 taking into account the released balance. Accordingly, the Company believes that such orders will be beneficial to all stakeholders by giving it the required time and resources to emerge from CCAA protection.
There can be no guarantees that the Company will be successful in its restructuring efforts or will emerge from CCAA protection.
Update on the Calcination Equipment
Orbite and the calcination equipment supplier's technical teams continued to work very closely to resolve the issues with the calcination equipment.
-- An extensive root causes analysis was conducted and is now complete. The
different causes contributing to the failures of the electric heating
system have been identified and confirmed;
-- The solution to the heating system failure issues has been identified,
modeled, and evaluated and is now entering the detailed engineering
phase, by the equipment supplier;
-- Solutions to the other issues identified are mostly finalized and are
into the detailed engineering phase, also carried out by the equipment
The initial diagnostic phase carried out by the equipment supplier took longer than it originally planed, consequently, production activities are expected to commence in the latter part of Q1 2018, subject to raising adequate financing and implementing the contemplated supplier-related solutions.
The Company will provide further updates as developments occur.