SOURCE: BWI Holdings, Inc.

BWI Holdings, Inc.

March 04, 2009 19:04 ET

Budget Waste to Start Comprehensive Financial Restructuring

CALGARY, AB--(Marketwire - March 4, 2009) - BWI Holdings, Inc. (OTCBB: BWIH) would like to update its shareholders on the state of the operations of Budget Waste Alberta, Ltd, our wholly owned subsidiary in Canada.

As a consequence of the global financial crisis, Budget Alberta is suffering the same types of financial issues as so many other businesses, including shortage of affordable credit from banks and slow or failed payment from customers. In order to insure that the assets and business of Budget Waste are properly protected for our shareholders, your board of directors has elected to seek protection for Budget Alberta from creditors under the CCAA (Company Creditors Agreement Act ) process in Canada in order to reorganize the business.

This process is only taking place in Canada for Budget Alberta, our subsidiary, and is not for BWI Holdings Inc., the public parent company in the US.

Budget Alberta has sufficient cash on hand to fund ongoing operations, and its business will continue without interruption.

This decision to file for creditor protection is being implemented by Budget Alberta because of the extremely high interest rates Budget Alberta has been paying on equipment leases that have been in place for some time and Budget Alberta's challenge with attempting to secure refinancing of these leases with bank debt or other financings at current market rates in an environment where lenders are not lending.

Under CEO Jim Can, the company embarked on an ambitious turnaround in 2008 that involved cutting costs, eliminating expenses, reducing payroll, and focusing on key markets, all of which allowed Budget Alberta to begin operating on a positive cash flow basis. However, as the global recession deepened, Budget Alberta's customers began delaying payments, some have gone out of business altogether without paying Budget, and the downturn in housing construction and oil & gas projects, typical market strongholds for Budget Alberta, all have led to a severe tightening of cash. "Budget Waste, Inc. must secure sound financial footing," said Jim Can, CEO. "This step to give us protection from claims of creditors and to allow Budget Alberta to restructure its debt is imperative so that Budget Waste can build on its core strengths and be focused and financially sound in the coming months and years."

About BWI Holdings, Inc.

BWI Holdings, Inc. is holding company with its primary subsidiary, a waste solutions company located in Western Canada, that provides complete waste and recycling services to commercial, industrial, construction, homebuilding, oilfield and residential clients. With its broad range of innovative services, Budget offers its customers more value than other companies and competitive rates.

For more information on BWI Holdings, Inc., please visit our web site at www.budgetwaste.com or contact our investor relations department at:

BWI Holdings, Inc.
Investor Relations
3915 - 61st Ave. SE.
Calgary, AB T2C 1V5
Ph.403-255-2900
Toll Free 1-888-255-2990
Fax: 403-255-3237
Email: ir@budgetwaste.com

Safe Harbor Act Notice:

Certain information included in this press release, may contain forward-looking statements about our current and expected performance trends, growth plans, business goals and other matters. These statements may be contained in our filings with the Securities and Exchange Commission, in our press releases, in other written communications, and in oral statements made by or with the approval of one of our authorized officers. Information set forth in this press release contains various "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Private Securities Litigation Reform Act of 1995 (the "Act") provides certain "safe harbor" provisions for forward-looking statements. The reader is cautioned that such forward-looking statements are based on information available at the time and/or management's good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Forward-looking statements speak only as of the date the statement was made. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. Forward-looking statements are typically identified by the use of terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "predict," "project," "should," "will," and similar words, although some forward-looking statements are expressed differently. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.

Contact Information

  • For more information on BWI Holdings, Inc., please visit our web site at
    www.budgetwaste.com or contact our investor relations department at:

    BWI Holdings, Inc.
    Investor Relations
    3915 - 61st Ave. SE.
    Calgary, AB T2C 1V5
    Ph.403-255-2900
    Toll Free 1-888-255-2990
    Fax: 403-255-3237
    Email: Email Contact