AAER: CCAA Restructuring Process Update
AAER Inc. announced that pursuant to an order of the Quebec Superior Court issued on July 7, 2010 (the "July 7 Order"), the initial order granted under the Companies' Creditors Arrangement Act (Canada) ("CCAA") in favour of AAER on April 8, 2010, as subsequently extended from time to time by the court, has now been further extended until August 11, 2010 to allow for the filing of a plan of arrangement and for the holding of a creditors' meeting pursuant to the CCAA.
Subject to certain conditions, 7549032 Canada Inc. ("Pioneer"), a wholly-owned subsidiary of Pioneer Power Solutions Inc., has agreed to sponsor a plan of arrangement for the continuation of AAER (the "Plan"). Upon approval of the Plan by AAER's creditors, Pioneer will contribute an amount of $450,000 to be used to fund the Plan and the filing of articles of reorganization. Under the Plan, Pioneer will subscribe to the new AAER equity and will become the Corporation's sole shareholder.
Pursuant to the July 7 Order, Samson Belair / Deloitte Touche, in its capacity as monitor for AAER, will send to each creditor of the Corporation a notice of the creditors' meeting, a copy of the Plan and a proxy form for the creditors' meeting to be held on August 9, 2010 in Bromont, Quebec, for the purposes of considering and, if deemed advisable, approving the Plan.
The documentation and information on AAER's restructuring process are available on the monitor dedicated website at www.deloitte.com/ca/aaer.
About AAER Inc.
AAER is a wind turbine manufacturer located in Bromont, Quebec that manufactures and maintains high capacity 1 MW or more wind turbines principally for the North American market. Its strategy is to progressively build its products' components to provide a high level of reliability and competitive pricing to its customers. AAER uses a portfolio of proven European technologies to ensure the performance of its turbines in various wind conditions and terrains. Its stock is listed on the TSX Venture Exchange (TSX VENTURE:AAE - News). Additional information is available on AAER's website at www.aaer.ca.
This news release contains certain forward-looking statements or forward looking-information. These forward looking statements are subject to a variety of risks and uncertainties beyond AAER's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward looking statements. Such risks and uncertainties are disclosed under the heading "Risk Factors" in AAER's amended and restated preliminary prospectus dated February 25, 2010 and the annual information form for the year ended December 31, 2008 and dated March 26, 2009. Further, forward-looking information is in addition based on various assumptions, including, without limitation, assumptions about: (i) general business and economic conditions; (ii) selection of AAER's client bids in different requests for proposals; (iii) the availability of financing on reasonable terms; (iv) the availability of key components for the assembly of wind turbines, (v) the costs of raw materials and parts; (vi) AAER's ability to attract and retain skilled staff; (vii) market competition; (viii) the technology offered by AAER's competitors; (ix) AAER's ability to meet contractual obligations and delivery dates; and (x) AAER's ongoing relations with employees and with clients. Should one or more of these risks and uncertainties materialize, or should the underlying assumption prove incorrect or different, actual results may vary materially from those described in the forward-looking statements. All forward looking statements speak only as of the date of this news release. Accordingly, readers should not place undue reliance on forward-looking statements.
Chief Financial Officer