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TORONTO, ONTARIO--(Marketwired - Mar 21, 2016) - Danier Leather Inc. ("Danier" or the "Company") announced today that, with the authorization and approval of its board of directors (the "Board"), on March 21, 2016 the Company voluntarily made an assignment in bankruptcy pursuant to the provisions of the Bankruptcy and Insolvency Act (Canada) ("BIA"). The Company also announced that all of the directors of Danier have resigned with effect immediately upon the assignment in bankruptcy. KSV Kofman Inc. has been appointed as the trustee in connection with the bankruptcy proceedings (the "Trustee"). Danier has also obtained an order of the Ontario Superior Court of Justice appointing KSV Kofman Inc. as receiver over all of its property, assets and undertaking. The receivership will run concurrently with the bankruptcy and is intended to, among other things, facilitate an orderly wind-down of the Company.
As previously announced, as a result of the Company's ongoing financial difficulties and after extensively exploring its restructuring and strategic alternatives, on February 4, 2016 the Company commenced insolvency proceedings by filing a notice of intention to make a proposal (the "NOI") pursuant to the BIA. In connection with the proposal proceedings, the Company conducted a sale and investor solicitation process (the "SISP"), which process has since been completed. The Trustee acted as the proposal trustee under the NOI proceedings.
Following the Company's prior announcement of the filing of the NOI under the BIA, trading in the Company's subordinate voting shares (the "Shares") on the Toronto Stock Exchange ("TSX") was suspended and the TSX delisted the Shares effective at the close of business on March 17, 2016 for failure to meet the TSX's continued listing requirements. On February 17, 2016, the Company's principal securities regulator, the Ontario Securities Commission, issued a cease trade order that ceased all trading in securities of the Company for failure to file certain continuous disclosure materials.
Information with respect to the bankruptcy and receivership proceedings, as it becomes available, will be posted on the Trustee's website at www.ksvadvisory.com. The Trustee's website also contains copies of court materials and other information about the prior proposal proceedings, the SISP and related information. Inquiries with respect to these proceedings should be directed to the Trustee at 416-932-6207.
This press release may contain forward-looking information and forward-looking statements. All statements, other than statements of historical fact, are forward-looking statements and information that involve various risks and uncertainties. Wherever used, the words "may", "will", "anticipate", "intend", "estimate", "expect", "plan", "believe" and similar expressions identify forward-looking statements and information. Forward-looking statements and information should not be read as guarantees of future events, performance or results, and will not necessarily be accurate indications of whether, or the times at which, such events, performance or results will be achieved. All of the statements in this press release containing forward-looking statements or information, if any, are qualified by these cautionary statements.
Forward-looking statements and forward-looking information are based on information available at the time they are made, underlying estimates, opinions and assumptions made by management and management's current good faith belief with respect to future events, performance and results and are subject to inherent risks and uncertainties surrounding future expectations generally. Such risks and uncertainties include, but are not limited to, risks relating to the liquidation of the Company and its business or assets, receipt of necessary court and regulatory approvals, the impact of the proceedings on the Company's creditors and other stakeholders, risks related to the timing and completion of the proceedings described herein, and uncertainty concerning the realization amount resulting from these proceedings. For additional information with respect to these and other risks and uncertainties relating to Danier, reference should be made to Danier's most recent annual information form, quarterly and annual reports and financial statements and notes thereto, and supplementary information, which are available on SEDAR at www.sedar.com. Such factors and uncertainties are not exhaustive and additional risks and uncertainties not presently known to the Company or that Danier currently believes to be less significant may also adversely affect the Company. There can be no assurance that the actual results, performance, or events anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company or its stakeholders. Readers are urged to consider these factors carefully in evaluating forward-looking information and statements and are cautioned not to place undue reliance on any forward-looking information or statements. Danier disclaims any intention or obligation to update or revise any forward-looking information or statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.
KSV Kofman Inc.
As trustee and receiver