Strateco Obtains an Initial Order Under the Companies' Creditors Arrangement Act
BOUCHERVILLE, QUEBEC--(Marketwired - Jun 9, 2015) - An initial order regarding Strateco Resources Inc. ("Strateco") (TSX: RSC) (FRANKFURT:RF9) was issued today under the Companies' Creditors Arrangement Act (the "CCAA") by the Superior Court of Quebec (Commercial Division) (the "Court"). The Court has granted a stay of proceedings until July 9th, 2015, renewable thereafter.
The Quebec government's refusal to grant the certificate of authorization needed to proceed with the Matoush project has placed Strateco in a situation where it has become impossible to interest investors in the Matoush project. Strateco is currently unable to meet its financial commitments in spite of the fact that it has implemented measures aimed at reducing costs.
Strateco's principal asset is its litigious claim against the Government of Quebec, in which Strateco seeks up to $190 million in damages to offset the loss of its investment in the Matoush project. Strateco intends to seek, within the framework of the CCAA, the approval of an interim financing which would allow it to continue the prosecution of these proceedings for the benefit of all stakeholders, including its creditors and shareholders.
In the initial order issued under the CCAA, the Court has authorized the postponement of Strateco's annual meeting. In lieu of its next annual meeting, scheduled for June 17 at 10:30 am, at the Hilton Garden Inn in Montreal, Strateco will hold a public information meeting at the same place, date and time.
Strateco is represented by the law firm Stikeman Elliott LLP in connection with the CCAA proceedings. The Court appointed Ernst & Young Inc. (the "Monitor") to act as monitor of Strateco. The initial order issued under the CCAA and the relevant legal proceedings can be accessed directly from Strateco's website (www.strateco.ca) or the website of the Monitor (http://documentcentre.eycan.com/).
Trading of Strateco shares will remain suspended and the shares will therefore be delisted from the Toronto Stock Exchange. Shareholders will be provided with more information on this subject as soon as possible.
Strateco is also announcing the resignation of three of its directors, namely Messrs. Robert Desjardins, Henri Lanctôt and Jean-Guy Masse. The board of directors, which now consists of Messrs. Marcel Bergeron, Paul-Henri Couture, Guy Hebert and Jean-Pierre Lachance, would like to thank them for their support and the services they have rendered to Strateco over the years.
This news release contains "forward-looking statements" subject to certain risks and uncertainties. There can be no assurance that these statements will prove to be correct. Actual results and future events could differ significantly from those implied by such statements. These risks and uncertainties are discussed in Strateco's annual information form filed with the securities commissions of British Colombia, Alberta, Ontario and Quebec.
Contact
Strateco Resources Inc.
Guy Hebert
President and Chief Executive Officer
450.641.0775 / 1.866.774.7722
450.641.1601
ghebert@strateco.ca
Jean-Pierre Lachance
Executive and Exploration Vice President
450.641.0775 / 1.866.774.7722
450.641.1601
jplachance@strateco.ca
www.strateco.ca