MONTRÉAL, QUÉBEC--(Marketwired - June 6, 2013) - Malaga Inc. (MLG.TO) ("Malaga", the "Corporation") today announced that, with the authorization and approval of its board of directors, it has filed a Notice of Intention to Make a Proposal ("Notice of Intention") pursuant to the provisions of Part III of the Bankruptcy and Insolvency Act (Canada) (the "BIA").
Pursuant to the Notice of Intention, Raymond Chabot Inc. ("RC") has been appointed as the trustee in the Corporation's proposal proceedings (the "Proposal Trustee") and in that capacity will monitor and assist the board of directors in its restructuring efforts.
As previously announced, over the last six months, management and the board of directors of Malaga have been assessing Malaga's strategic options. During that period, the Corporation has been soliciting proposals for an investment in the Corporation or an acquisition of the Corporation or its assets.
The Corporation intends to continue that sale or investment solicitation process and expects to bring an application to the Québec Superior Court of Justice in the near future seeking, among other relief, authorization to continue such process on a defined timeline.
The filing of the Notice of Intention has the effect of imposing an automatic stay of proceedings that will protect the Corporation and its assets from the claims of creditors and others while the Corporation pursues its restructuring efforts.
There can be no guarantee that the Corporation will be successful in its restructuring efforts. Failure by the Corporation to achieve its restructuring goals will likely result in the Corporation becoming bankrupt.
All inquiries regarding the BIA proceedings should be directed to the Proposal Trustee at 514-878-2691. Court materials and other information about the BIA proceedings will be available on the Proposal Trustee's website at www.RC.com.
Changes to Management and Board of Directors
In the course of this process and in order to reduce its costs, the Corporation also announced the departure of Pierre Monet, as President and Chief Executive Officer and Joey Trombino, as Chief Financial Officer, effective immediately.
Finally, Gilles Masson and Réjean Gourde resigned as directors of the Corporation.
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 the Corporation'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 the Corporation's Annual Information Form for the year ended December 31, 2012. Further, forward-looking information is in addition based on various assumptions, including, without limitation, the expectation and beliefs of management, the assumed long term price of tungsten, that the Pasto Bueno property is a technical viable and economic operation and that the Corporation can access financing. 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. The information provided reflects management's current expectations regarding future events and performance as of the date of this news release. Accordingly, readers should not place undue reliance on forward-looking statements.
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Chairman of the board