PRESS RELEASE: Adanac to Seek Order Approving Plan of Arrangement, Setting Date for Meetings of Creditors and Dispensing with Requirement for Meeting of Shareholders
13.10.10 22:08:26- DJPN
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2010) - Adanac Molybdenum
Corporation (TSX:AUA)(PINK SHEETS:AUAYF)(FRANKFURT:A9N) ("Adanac" or the
"Company") is pleased to announce that it has finalized a plan of compromise
and arrangement (the "Plan") in a form acceptable to the Company and the Plan's
sponsors, the Senior Secured Noteholders. Adanac will apply to the Supreme
Court of British Columbia on Monday, October 18, 2010, for an order authorizing
the Company to file the Plan and to convene meetings of its creditors to
consider and vote on the Plan (the "Creditors' Meeting Order").
Pursuant to the Plan, it is intended that, among other things, Adanac's notice
of articles and articles will be amended to increase its authorized share
capital, and that the Company's existing shares will be consolidated at a rate
of 150:1. New shares will be then be issued to allow an allocation of shares to
the Senior Secured Noteholders (92%) and the Affected Unsecured Creditors (5%)
in full and final satisfaction of their claims, and the retention by existing
shareholders of 3% of Adanac's Outstanding Common Shares. Affected Unsecured
Creditors with claims equal to or less than $50,000, or reduced (for
distribution purposes only) at their election to $50,000, will receive a cash
distribution in an amount equal to the lesser of 10% of their claims and $5,000
in full and final satisfaction of their claims, unless they elect to receive
their pro rata share of 5% of Adanac's Outstanding Common Shares as outlined
above.
In accordance with the conditions of the Restructuring Term Sheet entered into
among the Company and certain of the Senior Secured Noteholders, Adanac will
ask the Court to order that Adanac is not required to hold a meeting of its
shareholders for the purposes of considering and voting on either the Plan or
the proposed amendments to the Company's notice of articles and articles.
Any shareholder that wishes to take a position on the Company's application
for the Creditors' Meeting Order may attend at the Courthouse at 800 Smithe
Street, Vancouver, British Columbia at 9:00 on Monday, October 18, 2010 to make
their position known.
Information and documents relating to the Plan and the Creditors' Meeting
Order will be published shortly on the website of Adanac's Court-appointed
Monitor, KPMG Inc.: www.kpmg.ca/adanac.
About Adanac Molybdenum Corporation
Adanac Molybdenum Corporation is listed on the TSX and Frankfurt exchanges and
owns the Ruby Creek Project in northern British Columbia. The Company has
advanced the project through feasibility studies, a production decision and has
previously ordered long-lead equipment, completed permitting for construction,
constructed a road to the site and secured US$80 million in bridge financing.
Cautionary Notice: This news release contains "forward-looking information"
within the meaning of applicable Canadian securities legislation and United
States securities laws. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as "plans",
"expects", or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "does not anticipate",
or "believes" or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might", or "will
be taken", "occur", or "be achieved". Forward-looking information is based on
the opinions and estimates of management at the date the information is made,
and is based on a number of assumptions and subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to
differ materially from those projected in the forward looking information. Many
of these assumptions are based on factors and events that are not within the
control of the Company and there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from results
anticipated by such forward looking information include risk factors discussed
in the Annual Information Form for the year ended April 30, 2008 for the
Company available at www.sedar.com. Although the Company has attempted to
identify important factors that could cause actual actions, events or results
to differ materially from those described in forward-looking information, there
may be other factors that cause actions, events or results not to be
anticipated, estimated or intended. There can be no assurance that
forward-looking information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
information. The Company undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions should
change except as required by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking information.
These securities have not been and will not be registered under the United
States Securities Act of 1933, as amended, or any state securities law, and may
not be offered or sold in the United States unless an exemption from
registration is available.
AI
