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Piper Resources Ltd. Announces Extension to CCAA Protection, Sales of Assets and Pursuit of Farm In Agreement
(Marketwire Canada (English) Via Acquire Media NewsEdge)
CALGARY, ALBERTA--(Marketwire - July 23, 2008) - As previously stated in the press release dated February 17, 2008, Piper Resources Ltd. ("Piper" or the "Company") was granted protection under the Companies Creditors' Arrangement Act (Canada) ("CCAA") on that date by an Initial Order from the Alberta Court of Queen's Bench (the "Court") which stayed its creditors from enforcing their rights until March 17, 2008 and such protection was extended by subsequent court orders on March 17, 2008, April 28, 2008 and June 12, 2008 and July 15, 2008. The July 15, 2008 court order extended the protection to July 22, 2008.
Since the inception of the Initial Order on February 15, 2008, the Company was actively seeking financing alternatives to replace the debt owed to Matco Capital Ltd. ("Matco"), the Company's secured creditor. After lengthy discussions with two investment groups based in New York, it was determined that the groups were not prepared to payout the Matco indebtedness in full by July 22, 2008.
As a result, Piper agreed, as previously disclosed in a news release on April 30, 2008, to dispose of its assets to Matco in exchange for the Matco indebtedness. Deloitte & Touche LLP was appointed as Receiver over the assets and shall transfer the lands secured by the Matco security and all related current assets to Matco, excluding the lands relating to the Farm In Agreement ("Farm In").
The stay of proceedings granted in the Initial Order was extended to August 5, 2008 in order for the Company to pursue financing of the activities under the Farm In. The Farm In, previously disclosed in a news release dated June 26, 2007, has been amended and allows Piper the ability to farm in on 9,600 (4,204 net) acres of land by paying 100% of the capital costs from drilling to equipping to earn a 70% working interest in the section with all of the activities to be completed by October 31, 2008. Certain amended terms under the Farm In must be met by the Company, which includes having adequate capital to complete all of the activities under the Farm In. Piper has been in discussions with groups to provide financing for these Farm In activities, however there can be no assurance that the Company will obtain the necessary financing by August 5, 2008. If there is no financing available, on acceptable terms, for the Farm In, the Company will have no assets and will not be able to carry on operations past August 5, 2008.
The materials filed to date in the CCAA proceedings are available on the Receiver's website of www.deloitte.ca under the Insolvency and Restructuring link (the "Website") or by contacting the Receiver directly at (403) 298-5999 or by email at piper@deloitte.ca.
Certain information regarding the Company contained herein may constitute forward-looking statements. These statements relate to future events or future performance of the Company. When used in this release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", believe", "estimate", "predict", "seek", "propose", "expect", "potential", "continue", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current view with respect to certain events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance, or achievements to vary from those described in this presentation. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this release as intended, planned, anticipated, believed, estimated, or expected.
Contact:
Greg CavePiper Resources Ltd.President(403) 718-2301
? 2007 - Marketwire
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