Update on Strateco: $190 Million Lawsuit Against the Quebec Government and CCAA Court Protection
BOUCHERVILLE, QUEBEC--(Marketwired - Jul 9, 2015) - The process for the motion to institute proceedings filed by Strateco Resources Inc. ("Strateco") with the Superior Court of Quebec whereby Strateco is claiming some $190 million from the Quebec government is unfolding as per the agreed-to schedule; the Court has agreed to special case management and the Attorney General of Quebec has submitted its defense. The Superior Court of Quebec (Commercial Division) has also extended the initial order issued under the Companies' Creditors Arrangement Act ("CCAA") in relation to Strateco until September 3, 2015.
Motion to Institute Proceedings
Pursuant to the motion to institute proceedings, the Attorney General of Quebec had asked for special case management, which Strateco had not opposed. On June 25, 2015, the Associate Chief Justice therefore appointed the Honourable Justice Denis Jacques of the Quebec Superior Court as the coordinating judge of the proceedings. This appointment is aimed at ensuring that the proceedings are handled efficiently.
Furthermore, as provided for in the agreement between Strateco and the Attorney General of Quebec, the latter filed the Quebec government's defense on June 26, 2015. The agreement can be found under "Legal Proceedings" on Strateco's website (www.stratecoinc.com/en/legal-proceedings.php).
CCAA Initial Order
The coordinating judge of the Superior Court of Quebec (Commercial Division) has appointed the Honourable Justice Danielle Turcotte to oversee the CCAA proceedings instituted by Strateco. On July 8, 2015, at Strateco's request, the Superior Court of Quebec (Commercial Division) approved an extension of the protection provided by the initial order until September 3, 2015, to enable Strateco to finalize its efforts to finance the $190 million lawsuit against the Quebec government.
Justice Turcotte also rendered her decision regarding the request for the creation of two super-priority charges to protect the professionals and the directors, which was opposed by Toro Energy Ltd. ("Toro"). As requested by Strateco, the judge ordered an administrative charge of $2 million to protect the professionals and another charge of $2.5 million to protect the directors. These charges have priority over charges of Toro and other secured creditors. The judgement can be found under "Legal Proceedings" on Strateco's website.
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
www.strateco.ca
Jean-Pierre Lachance
Executive Vice President
jplachance@strateco.ca