Planet Organic Health Corp.
TSX VENTURE : POH

Planet Organic Health Corp.

April 30, 2010 07:32 ET

Planet Organic Files for Creditor Protection

EDMONTON, ALBERTA--(Marketwire - April 30, 2010) - Planet Organic Health Corp (TSX VENTURE:POH), Planet Organic Health Corp. ("POH") today announces that after consideration of all viable alternatives, POH's Board of Directors has determined that it is in the best interests of the Corporation for it and its wholly-owned subsidiary in Canada, Darwen Holdings Ltd. to seek court protection from creditors under the Companies' Creditors Arrangement Act (Canada) ("CCAA"). On April 28, 2010, POH and its subsidiaries received demands for payment and Notices of Intention to Enforce Security on term loans and convertible notes held by the Company's principal lender, Catalyst Capital Group Inc. on behalf of funds managed by it ("Catalyst"). At the time of demand, the total indebtedness owing to Catalyst was in excess of US$31.1 million.

POH sought and was granted CCAA protection by order of the Ontario Superior Court of Justice (the "Court") today, April 29, 2010 (the "Order"). The Court has granted CCAA protection for an initial period of 30 days, expiring on May 27, 2010. The filing does not affect the U.S. assets of POH's Mrs. Green's Division. The CCAA protection granted to POH pursuant to the Order will stay creditors, suppliers and others from enforcing any rights against POH and its Canadian subsidiary and will afford POH and its subsidiary the opportunity to restructure their affairs. POH took this decision after thorough consultation with its advisors and extensive consideration of all other alternatives.

As a result of the CCAA protection, the Corporation has decided to adjourn its annual general meeting of shareholders, previously scheduled to be held on April 30, 2010, in Calgary, Alberta. The meeting will now be held on Friday, May 14, 2010 in Calgary, Alberta. While under CCAA protection, POH's Board of Directors remains in place and its management remains responsible for day to day operations under the supervision of the court appointed Monitor.

Deloitte & Touche Inc. is the court appointed Monitor for the CCAA proceedings. A copy of the Order will be made available on the Monitor's website at www.deloitte.com/ca/planet-organic.

The CCAA filing will provide POH with a defined process and the necessary time to restructure its affairs in order to emerge with a sustainable and profitable organic food retail business. POH's organic retail business in Canada and the U.S. remains profitable and there are strong opportunities to grow in a number of key segments.

POH's operating plans are unaffected by today's announcement. All organic retail outlets will continue to operate in Canada and the U.S. without disruption to existing customers or employees. POH will proceed with developing a framework for a restructuring plan with the goal of making POH larger and more profitable. 

ABOUT PLANET ORGANIC

Planet Organic Health Corp. (TSX VENTURE:POH) is a natural products retail company. Planet is listed on the TSX Venture Exchange as a Tier One company. Planet operates nine natural food supermarkets throughout Canada under the Planet Organic Market banner and eleven natural food supermarkets in the U.S. under the Mrs Green's Natural Markets banner. Planet has a total of nine stores throughout Canada and eleven in the U.S.

Forward-Looking Statements

Note: This press release contains forward-looking information and forward-looking statements within the meaning of Canadian provincial securities laws. These forward-looking statements include, among others, statements with respect to the timing and continuance of the CCAA protection, the uncertainty involved in the court proceedings, the restructuring process, potential opportunities for the restructured business and ongoing operation of certain of the Company's retail grocery outlets. The words "plan", "remain", "will", "continue", "seek", "pursue", ""opportunity", "grow", "progress", variations of those words and other words and expressions which may be predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results of the restructuring to differ materially from those set forth in the forward-looking statements include: general economic conditions; demand for the Company's products; unforeseen administrative, legal, operational or production issues; cost of materials; sales and marketing performance; and, other risks detailed from time to time in the documents filed by the Company with the securities regulators in Canada. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Planet Organic Health Corp.
    Darren Krissie
    Executive VP, Business Development
    (780) 719-4667