GrowthWorks Canadian Fund Granted Extension under Creditor Protection and Order to Initiate Claims Process

Jan 09, 2014, 16:49 ET from GrowthWorks Canadian Fund Ltd.

TORONTO, Jan. 9, 2014 /CNW/ - GrowthWorks Canadian Fund Ltd. (the "Fund"), which previously announced that it obtained orders of the Ontario Superior Court of Justice (the "Court") granting it creditor protection pursuant to the Companies' Creditors Arrangement Act (Canada) ("CCAA") until and including January 15, 2014, today announced that it has obtained a further extension of the "Stay Period" until and including March 7, 2014, pursuant to an order of the Court issued on January 9, 2014 (the "Stay Extension Order").  The Stay Extension Order continues and extends the stay of proceedings, which has stayed certain creditor claims and the exercise of contractual rights against the Fund.

The Stay Extension Order provides the Fund with the necessary protection to continue to pursue the divestment of its investment portfolio and other strategic options, with a view to maximizing the return on its assets under the oversight of the Board of Directors of the Fund and FTI Consulting Canada Inc., in its capacity as Court-appointed monitor in the CCAA proceedings (the "Monitor"), and with the advice of its advisors.

The Fund also announced that it today obtained an order setting out a process for creditors of the Fund to prove any creditor claims that they may have against the Fund or against officers and/or directors of the Fund (the "Claims Procedure Order"). The Fund believes that the Claims Procedure Order will facilitate negotiation with bidders participating in the Fund's previously announced Sale and Investor Solicitation Process ("SISP"). Pursuant to the Claims Procedure Order, creditors of the Fund are entitled to file claims against the Fund and/or its directors and officers until 5:00 pm Toronto time on March 6, 2014.

A copy of the Stay Extension Order, the Claims Procedure Order and the
Fifth Report of the Monitor are available, and details relating to this case may be accessed, on the Monitor's website at

Forward Looking Statements: 

This press release contains forward looking statements, including statements with respect to the CCAA proceedings. These forward-looking statements reflect the Fund's current views and are based on certain assumptions, including assumptions as to future operating conditions and courses of action, sale or refinancing alternatives, economic conditions and other factors the Fund believes are appropriate. Such forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in these statements, including the risk that a disposition of the Fund's portfolio investments or refinancing or other strategic alternatives may not be available on terms acceptable to the Fund, or at all, or that any such disposition or other strategic alternative would yield proceeds sufficient to satisfy in full the Fund's payment obligations to Roseway Capital S.a.r.l., the Fund's other creditors or any distribution to the Fund's shareholders; the risk that litigation or defence proceedings involving claims by the former manager of the Fund or other third parties against the Fund may involve substantial expense and, if successful, could require the Fund to pay substantial damages; and those risks and uncertainties disclosed in the Fund's most recently filed prospectus and other regulatory filings posted on SEDAR at  These risks and uncertainties may cause actual results, events or developments to be materially different from those expressed or implied by such forward-looking statements.  Unless required by law, the Fund does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or results or other factors.

SOURCE GrowthWorks Canadian Fund Ltd.