Omnitech Consultant Group inc.

Omnitech Consultant Group inc.

October 31, 2006 17:28 ET

GCO Files an Intention Notice Making a Proposition to its Creditors

QUEBEC CITY, QUEBEC--(CCNMatthews - Oct. 31, 2006) - Omnitech Consultant Group Inc.(TSX VENTURE:GCO) ("GCO") announces that earlier today, it filed a notice of intention to make a proposal to creditors in accordance with the provisions of the Bankruptcy and Insolvency Act. The notice of intention does not include GCO's subsidiary Groupe Isac Inc. who will continue its activities without being affected by this procedure.

The Corporation is confident that such a proposition will facilitate its reorganization and return to a long-term viable financial situation while continuing normal business operation.

The firm PricewaterhouseCoopers inc. has been retained as trustee. In addition to its legal responsibilities, the firm will assist GCO's management team in the development of a proposition to its creditors that will be subject to vote at a meeting which will be held at a date yet to be determined. The schedule of this process will essentially be dictated by the Corporation's progress in refinancing and negotiating with its financial partners.

In the meantime, GCO will benefit from a complete stay with regards to debt payments and to any creditor proceeding. The Corporation will then be able to dedicate its resources towards operational growth, refinancing and the development of a plan to satisfy its creditors while preserving shareholders equity.

In order to be accepted the proposition will have to obtain the approval of at least 66% (2/3) of the total value of the Corporation debt and 50% plus one of the number of creditors allowed to vote at the creditors assembly.

"GCO's highly leveraged balance sheet is a drain on its profitability and compromises its future development. By going ahead with this proposition to creditors, the Corporation will continue its reorganization process in order to pursue its operations in a profitable manner", declared Philippe Collard, Chairman and Chief Executive Officer of GCO.

About Omnitech Consultant Group Inc. ("GCO")

GCO is a Canadian leader in performance engineering. GCO offers solutions as a one-stop-shop in engineering, information technology and systems maintenance. GCO is capable of intervening in all aspects of industrial engineering and information technology, thus combining a major and distinctive niche compared with the competition. GCO integrates new technologies or optimizes existing systems by applying cutting-edge expertise currently used in the best practices.

The prospective announcements contained in this press release are associated with known and unknown risks, uncertainties and other factors that could lead to actual company results, yields and achievements that differ significantly from the future results, yields or achievements expressed or implied by these prospective facts.

TSX Venture Exchange Inc. assumes no responsibility regarding the relevance or accuracy of this press release.

Contact Information

  • Omnitech Consultant Group Inc.
    Philippe Collard
    Chief Executive Officer
    Omnitech Consultant Group Inc.
    Philippe R. Bertrand
    Vice President