ACHESON, Alberta, Sept. 01, 2020 (GLOBE NEWSWIRE) — ENTREC Corporation (“ENTREC” or the “Company”) announces that, in connection with its creditor protection proceedings under the Companies’ Creditors Arrangement Act (the “CCAA“) and previously announced sales and investor solicitation process (the “SISP“), it has received orders from the Court of Queen’s Bench of Alberta (the “Court”) authorizing it and its subsidiaries to complete the sale of substantially all of their assets pursuant to certain binding purchase and sale agreements entered into by the Company with various purchasers. Consequently, ENTREC and its subsidiaries today completed the sale of substantially all of the business and assets associated with their Bonnyville location to one purchaser, Further, provided that all remaining closing conditions are satisfied, ENTREC and its subsidiaries anticipate (i) completing the sale of substantially all of the business and assets associated with their Fort McMurray location to another purchaser later in September, (ii) completing the sale of substantially all of the business and assets associated with their US operations to another purchaser, also later in September, and (iii) completing the sale of the remainder of their equipment assets via auction in early October. Readers are cautioned that there are a number of factors outside of the control of ENTREC that may delay or impact the closing of these sale transactions and, as a result and notwithstanding the approval of the Court, any one or more of the transactions may not close on the timeline or in the manner expected by ENTREC or at all.Upon the closing of these transactions, ENTREC and its subsidiaries will have sold substantially all of their assets in both Canada and the United States and the only remaining operational activities to be completed will be the collection of accounts receivables that were excluded assets from the various transactions and the wind-up of their estates. The net proceeds from the sale transactions, and the collection of accounts receivable, will be used to pay down the ENTREC’s debt owing to is senior secured creditors. Holders of ENTREC’s common shares and unsecured convertible subordinated debentures will not receive any payments for, or distributions on, their securities in connection with the sale transaction or the CCAA proceedings.As required by the CCAA, pursuant to an earlier order of the Court Alvarez & Marsal Canada Inc. (the “Monitor”) has been appointed as Monitor of the Company (including its subsidiaries) in its CCAA proceedings. The duties and powers of the Monitor are outlined in that earlier order and the CCAA. Materials publicly filed in the CCAA proceedings, including copies of the orders referred to in this press release, will be made available on the Monitor’s website at http://www.alvarezandmarsal.com/entrec.About ENTRECENTREC is a heavy haul transportation and crane solutions provider to the oil and natural gas, construction, petrochemical, mining and power generation industries.Forward-Looking StatementsCertain information contained in this press release may contain forward looking statements within the meaning of applicable securities laws. The use of any of the words “continue”, “plan”, “intend”, “explore”, “propose”, “would”, “will”, “believe”, “expect”, “position”, “anticipate”, “improve”, “enhance” and similar expressions are intended to identify forward-looking statements. More particularly and without limitation, this press release contains forward-looking statements concerning the anticipated completion of the sale transactions disclosed herein, the operations of ENTREC following the sale transactions, and the use of the net proceeds of the sale transactions and the collection of accounts receivable. Readers are cautioned that there are a number of factors outside of the control of ENTREC that may delay or impact the closing of these sale transactions and, as a result and notwithstanding the approval of the Court, any one or more of the transactions may not close on the timeline or in the manner expected by ENTREC or at all. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those implied in the forward-looking statements. There may be factors that cause actions, events or results to differ from those anticipated, estimated or intended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and are based on current assumptions which management believes to be reasonable. The Corporation disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.For further information, please contact the Monitor, Alvarez & Marsal Canada Inc.Telephone: 1-888-368-7311
Email: entrec@alvarezandmarsal.com.
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