SOURCE: BWI Holdings, Inc.

BWI Holdings, Inc.

January 05, 2010 09:00 ET

BWI Holdings, Inc. -- Corporate Update

CALGARY, AB--(Marketwire - January 5, 2010) - BWI Holdings, Inc. (PINKSHEETS: BWIH), operating as Budget Waste, Inc. (the "Company"), a leading provider of waste and recycling services to industrial, residential, and commercial clients, is extremely pleased to announce the following information.

BWI Holdings, Inc. would like to update its shareholders on recent developments.

BUDGET WASTE INC. ("BWI"), is pleased to announce that on Wednesday, December 23rd, the Court of Queen's Bench of Alberta issued an Order approving the mail out of its Plan of Arrangement (the "Plan"), to creditors affected by the Companies' Creditors Arrangement Act (Canada) ("CCAA") filing.

The Plan contemplates payment of all of the post CCAA lease obligations in full, payment of the Canada Revenue Agency ("CRA") obligations in full, payment of all post CCAA unsecured creditors in full, and offers pre CCAA creditors the ability to either share in the payment of $600,000.00 (the "Unsecured Creditor Fund"), or to accept shares in BWI Holdings Inc., the parent of BWI, in the amount of 150% of the unsecured creditor claim. The Plan offers additional upside to the Unsecured Creditor Fund if certain assets of BWI are sold for in excess of a predetermined auction price. If this occurs, additional funds will be made available to unsecured creditors for distribution by the Monitor. It is anticipated that unsecured creditors will receive a minimum of $0.50 on the dollar if the Plan is accepted.

The Plan has received the support and approval of the Monitor, who has determined that the Plan is more beneficial to creditors than the liquidation of the company and disposition of liquidation proceeds.

The Court has ordered creditors meetings to be held in Calgary on January 29th, 2010.

The Company has continued to operate in the ordinary course since its CCAA filing in March of 2009, and after a lengthy review of its assets and business units, as proposed the restructuring plan is currently being mailed to creditors.

If the creditors vote in favor of the Plan on January 29th, the Company will return to Court on February 8th to apply for a Court Order sanctioning the Plan.

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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

  • Contact:

    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