Richtree Inc.

Richtree Inc.

March 16, 2005 10:16 ET

Update on Richtree's Restructuring Process


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RICHTREE INC.

TSX SYMBOL: MOO.SV.B

MARCH 16, 2005 - 10:16 ET

Update on Richtree's Restructuring Process

TORONTO, ONTARIO--(CCNMatthews - March 16, 2005) - Richtree Inc. and its
operating subsidiary, Richtree Markets Inc. ("Markets" and together with
Richtree Inc., "Richtree"), announced today that the Ontario Superior
Court of Justice has granted orders to Richtree Inc. and Markets
extending to April 29, 2005 the time for them to file proposals pursuant
to the Bankruptcy and Insolvency Act.

The Court also authorized Richtree Inc. and Markets to enter into an
extension and amendment of the debtor-in-possession ("DIP") term sheet
with Catalyst Fund General Partner I Inc. ("Catalyst") originally dated
October 18, 2004, extending the DIP term sheet to April 29, 2005. The
maximum amount available under the DIP financing remains at $4.0 million.

Richtree announced that the previously disclosed sale of the property,
assets and undertaking of Markets to Richtree Market Restaurants Inc., a
newly incorporated company controlled by Catalyst, Richtree's senior
secured lender, is currently expected to close by the end of March 2005.
Markets shall, until the completion of the sale, remain in possession of
its property and shall carry on its business, subject to and in a manner
consistent with the purchase agreement entered into as of February 14,
2005.

Richtree confirmed the view expressed several times previously that the
shareholders of Richtree Inc. are highly unlikely to recover any value
for their Class B Subordinate Voting shares (MOO.SV.B) from the Richtree
restructuring process and therefore unlikely to have any continuing
economic interest in Richtree.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Richtree Inc.
    Colin West
    President and CEO
    (416) 366-8122
    cwest@richtree.ca