Richtree Inc.

Richtree Inc.

January 10, 2005 15:51 ET

Richtree Updates Restructuring Efforts


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RICHTREE INC.

TSX SYMBOL: MOO.SV.B

JANUARY 10, 2005 - 15:51 ET

Richtree Updates Restructuring Efforts

TORONTO, ONTARIO--(CCNMatthews - Jan. 10, 2005) - Richtree Inc.
(TSX:MOO.SV.B) and its operating subsidiary, Richtree Markets Inc.
(collectively, "Richtree" or the "Corporation"), announced today that on
January 7, 2005 the Ontario Superior Court of Justice has extended the
protection period granted to Richtree under the Companies' Creditors
Arrangement Act ("CCAA") from January 7, 2005 to January 31, 2005. The
Court also authorized Richtree to enter into a further extension from
January 7, 2005 to January 31, 2005 of the debtor-in-possession ("DIP")
term sheet originally dated October 18, 2004 between Richtree and
Catalyst Fund General Partner I Inc. ("Catalyst"). The maximum amount
available to the Corporation under the DIP term sheet is $3.0 million.
Richtree is continuing in discussions with Catalyst with respect to the
next steps in the Corporation's CCAA restructuring process and Catalyst
has agreed to the further extensions of the CCAA protection period and
the DIP financing to January 31, 2005 in order that during this period
certain restructuring alternatives can be further examined.

Colin T. West, President and CEO of Richtree, noted "the continued
consideration of restructuring alternatives and the extension of the
CCAA protection period are in the best interests of Richtree's
stakeholders having an economic interest in its operations, including,
in particular, Richtree's employees." Richtree operates its
market-concept restaurants in Ontario and Quebec.

The Court also approved the activities of PricewaterhouseCoopers Inc.,
in its capacity as monitor of Richtree (the "Monitor"), as set out in
the third report of the Monitor to the Court dated December 15, 2004 and
the fourth report of the Monitor to the Court dated January 5, 2005.

A copy of the court order referred to above will soon be available on
Richtree's web site at www.richtree.ca. The fourth report of the Monitor
to the Court dated January 5, 2005, which supported the application for
the order described above, will also be available on the web site.

Richtree again confirmed its view that the shareholders of Richtree Inc.
are unlikely to recover any value for their Class B Subordinate Voting
shares (MOO.SV.B) from the Richtree restructuring process and therefore
do not likely have any continuing economic interest in Richtree.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Richtree Inc.
    Colin West
    President and CEO
    (416) 366-8122
    E-mail: cwest@richtree.ca