Essex Oil Ltd.

February 04, 2011 14:37 ET

Essex Provides Update on Creditor's Attempt to Pursue Repayment of Loan

TORONTO, CANADA--(Marketwire - Feb. 4, 2011) - ESSEX OIL LTD. ("Essex") announced on January 14, 2011 that Randsburg International Gold Corp. ("Randsburg") had initiated steps to appoint Wm. Andrew Campbell as a privately-appointed receiver over the assets of Essex pursuant to a general security agreement granted to Randsburg. Essex had received a letter from Mr. Campbell advising that he had been appointed as receiver over the assets of Essex. However, no evidence of that appointment signed by Randsburg was received from Randsburg or from Mr. Campbell.

Randsburg is a shareholder of Essex. Michael Opara, who is the President, Chief Executive Officer and a director of Randsburg, is also the President and a director of Essex.

Only on January 28, 2011, did Essex receive a copy of the letter wherein Randsburg purported to appoint Mr. Campbell as receiver over the assets of Essex. Upon review of the letter, Essex has advised Randsburg that their attempted appointment of Mr. Campbell as receiver over the assets of Essex contravenes section 243(4) of the Bankruptcy and Insolvency Act (Canada) which provides that only a licensed trustee may be appointed as a receiver pursuant to the terms of a security agreement. 

Essex reviewed the list of licensed trustees maintained by the Office of the Superintendent of Bankruptcy (Canada) and determined that Mr. Campbell is not a licensed trustee, and therefore, is not authorized to act as a receiver. Accordingly, it is the position of Essex that the appointment of Mr. Campbell as receiver over the assets of Essex is illegal, invalid and of no effect. 

As a result, Essex has demanded that Randsburg withdraw its appointment of Mr. Campbell as receiver over the assets of Essex, Mr. Campbell withdraw his efforts to take possession of the assets of Essex and Mr. Campbell cease all efforts to realize on the assets of Essex. In the event that Randsburg and Mr. Campbell do not comply with Essex's demands, Essex will consider all of its rights and remedies as against Randsburg, Michael Opara and Mr. Campbell.

Statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such "forward-looking statements" are not guarantees of future performance and that actual developments or results may vary materially from those in such "forward-looking statements".

Contact Information

  • Essex Oil Ltd.
    Miles Nagamatsu
    Chief Financial Officer
    (416) 360-8006