BWI Holdings, Inc., operating as Budget Waste, Inc., a leading provider of waste and recycling services to industrial, residential, and commercial clients, was extremely pleased to announce the following information this morning.
On Wednesday, December 23rd, the Court of Queen’s Bench of Alberta issued an Order approving the mail out of its Plan of Arrangement to creditors affected by the Companies’ Creditors Arrangement Act (Canada) (”CCAA”) filing. The Plan contemplates payment of all of the post CCAA lease obligations in full, payment of the Canada Revenue Agency (CRA) obligations in full, payment of all post CCAA unsecured creditors in full, and offers pre CCAA creditors the ability to either share in the payment of $600,000.00 (the “Unsecured Creditor Fund”), or to accept shares in BWI Holdings Inc., the parent of BWI, in the amount of 150% of the unsecured creditor claim.
According to the press release, the Plan offers additional upside to the Unsecured Creditor Fund if certain assets of the company are sold for in excess of a predetermined auction price. If this occurs, additional funds will be made available to unsecured creditors for distribution by the Monitor. Unsecured creditors are expected to receive a minimum of $0.50 on the dollar if the Plan is accepted.
The Plan has received the support and approval of the Monitor, who believes the Plan is more beneficial to creditors than the liquidation of the company and disposition of liquidation proceeds. The Court has ordered creditors meetings to be held in Calgary on January 29th, 2010. If the creditors vote in favor of the Plan on January 29th, the company will return to Court on February 8th to apply for a Court Order sanctioning the Plan.