Extenway Solutions Inc.

Extenway Solutions Inc.

December 21, 2015 18:17 ET

Extenway Solutions Inc. Announces Filing of Notice of Intention to Make Proposal to Creditors

MONTREAL, QUEBEC--(Marketwired - Dec. 21, 2015) - Extenway Solutions Inc. (TSX VENTURE:EY) announces the following events:

Request for Appointment of Receiver for Extenway MD Inc. by a Secured Lender

Extenway Solutions Inc. ("Extenway" or the "Company") currently operates eight hospital installations through its wholly owned subsidiary Extenway MD Inc. ("MD"). These installations were financed through term loans from Caisse Desjardins De Beauport ("Desjardins"). The Company was not current on payments under these loan agreements but had entered into a forebearance agreement waiving this default until 11 December 2015. The Company has been unable to negotiate an extension to this agreement and therefore is in default under the loan agreements.

The Company has been advised that Desjardins has obtained court approval to exercise its rights as a secured creditor and appoint Raymond Chabot Inc. as receiver of MD. Raymond Chabot Inc. is now responsible for the operation of the system within those hospitals.

Interested parties may contact Dominic Deslandes, CPA CA Cirp Syndic of Raymond Chabot Inc. at (514) 393-4725 or deslandes.dominic@rcgt.com.

Impact on Extenway Solutions Inc.

Desjardins did not request a receiver for Extenway. However the hospital installations within MD were the major operating asset of the Company. While the Company was in advanced discussions to raise financing, losing control of the hospital installations will effectively terminate those negotiations. Consequently, while retaining significant intellectual property, Extenway would not have cash to continue operations.

Therefore the Company and its subsidiary Extenway Medical Inc. ("Medical") have filed a notice of intention to make a proposal ("NOI") to its creditors in accordance with the Bankruptcy and Insolvency Act. PricewaterhouseCoopers Inc. ("PwC" or the "Trustee") has been retained as trustee. Extenway will enter into an agreement with MD's receiver to provide it services to facilitate the continued operation of the hospital contracts. In addition Extenway, subject to court confirmation, has entered into an agreement to obtain debtor-in-possession financing ("DIP") to maintain operations throughout the NOI. Finally, in addition to its legal responsibilities PwC will assist the company in making a proposal to its creditors, which will be submitted to them at a meeting to be held at a date yet to be determined. In the meantime, the company will benefit from a stay with regards to debt payments and any creditor proceedings.

Interested parties may contact Philippe Jordan of PwC at (514) 205-5232 or philippe.jordan@ca.pwc.com.

Resignation of Directors and Officers

The external members of the Board of Directors have resigned from the Board of Extenway Solutions Inc. except for Mr. John McAllister who will remain as the sole Director and Officer. The Directors of Extenway Solutions Inc. that have resigned are Louis Brunel, Carolyne Lassonde, Francine Laurent and Lorne Zakaib. Me Lassonde also resigned as Secretary of the Company. The Company appreciates their contributions.

Mr. Richard Laferriere has resigned as an officer and director of Solutions and Medical. Mr. David Brown has resigned as an officer of Solutions and as an officer and director of Medical. Mr. John McAllister continues as the sole officer and director of Solutions and Medical. All three have resigned as officers and directors of MD.

The TSX Venture Exchange has advised that the Company will be suspended and transferred to the NEX.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Extenway Solutions Inc.

Extenway is a provider of media, connectivity and communications solutions serving the healthcare industry. The Company's services include Bedside Terminal Solutions, Interactive Television Solutions, as well as Internet, entertainment, Content, Marketing, Advertising Media, Education and Integration Solutions. Extenway enables guest-centric organizations get connected, informed and entertained. For more information, visit www.extenway.com.

Disclaimer - Safe Harbour Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking statements. These forward-looking statements relate to the future financial conditions, results of operations or business of the Company. These statements may be current expectations and estimates about the markets in which Extenway Solutions Inc. operates and management's beliefs and assumptions regarding these markets. These statements are subject to important risks and uncertainties which are difficult to predict and assumptions which may prove to be inaccurate. The results or events predicted in forward-looking statements may differ materially from actual results or events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In particular, forward-looking statements do not reflect the potential impact of any merger, acquisitions or other business combinations or divestitures that may be announced or completed after such statements are made.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Mr. John McAllister
    President and CEO
    Extenway Solutions Inc.
    (514) 694-1916
    (514) 694-4280 (FAX)