CALGARY, Alberta--(BUSINESS WIRE)--
Walton Edgemont Development Corporation (the “Corporation”), Walton International Group Inc. (“WIGI”) and certain affiliates, including the general partner of Walton Development and Management L.P. and the general partner of Walton Asset Management LP (collectively, the “WIGI CCAA Entities”) announced today that they have obtained creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”) pursuant to an initial order (the “Initial Order”) granted by the Court of Queen’s Bench of Alberta.
The Initial Order authorizes the WIGI CCAA Entities to begin a court-supervised restructuring and provides for a broad stay of proceedings against the WIGI CCAA Entities in order to provide the opportunity to finalize and present a CCAA plan to creditors for approval. Under the terms of the Initial Order, Ernst & Young Inc. will serve as the Court-appointed monitor (the “Monitor”) of the WIGI CCAA Entities. The WIGI CCAA Entities are being advised by Bennett Jones LLP.
WIGI’s and the Corporation’s business has been adversely impacted by the effects on the Alberta economy of the substantial and sustained drop in energy prices that commenced in 2014. This has resulted in weakened demand, reduced sales and revenues, and protracted project timing in many of the Walton Group’s real estate developments. Given these continued economic conditions, liquidity restraints and tightening credit markets, it has become difficult to obtain financing extensions and new project financing.
The Corporation, WIGI and their advisors, in consultation with the Monitor, are currently assessing the best course forward for the WIGI CCAA Entities. This includes an extensive review and evaluation of potential restructuring alternatives that will maximize value for all stakeholders of the WIGI CCAA Entities. During the CCAA proceedings, it is expected that day-to-day operations will continue and interim financing has been secured in order to carry on business. The WIGI CCAA Entities have already undertaken substantial and meaningful steps to reduce their costs in reaction to declining revenues and cash flows, and will continue to pursue cost saving opportunities through this process.
Further news releases will be provided on an ongoing basis throughout the CCAA process to provide further details in respect of the restructuring plan as may be determined necessary.
A copy of the Initial Order and additional information regarding the CCAA proceedings will be available on the Monitor’s website at www.ey.com/ca/wigi.
The Corporation is managed by Walton Asset Management L.P. and the development of the project is managed by Walton Development and Management L.P., both of which are members of the Walton Group of Companies.
This news release, required by Canadian laws, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This news release contains forward looking information, and actual future results may differ from what is disclosed in this news release. The risks, uncertainties and other factors that could influence results are described in the prospectus and other documents filed with Canadian securities regulatory authorities and available online at www.sedar.com.