League Financial Partners Files for Creditor Protection: Company Developing Restructuring Plan
VICTORIA, BRITISH COLUMBIA--(Marketwired - Oct. 18, 2013) - League Financial Partners Inc. and its affiliated entities ("League Group" or the "Company") announced today that to facilitate an orderly restructuring of its business and operations, the company obtained an Initial Order from the Supreme Court of British Columbia to commence proceedings under the Companies' Creditors Arrangement Act (CCAA). The terms and conditions of the restructuring plan have not yet been determined by the company.
The operations of the various entities within the League Group are intended to continue as usual and obligations incurred to employees and suppliers during the period of restructuring are expected to be met in the ordinary course. League Group management will remain responsible for the day-to-day operations of the company.
The Company previously announced its intentions for a re-organization and listing transaction, as outlined in its Amended and Restated Preliminary Prospectus date July 22, 2013. Due to delays in closing the re-organization transaction, the Company will not be proceeding with the re-organization outlined therein.
"Our re-organization objective remains steadfast even though we are adopting an alternative path," said League Group Chief Executive Officer, Adam Gant. "The decision to file for CCAA protection was not taken lightly but was taken to allow the Company to address its financial affairs. We intended to achieve better operational efficiencies through the re-organization associated with the process of taking the company public, but this proved to be more challenging, more expensive and more time consuming than anticipated. Our assets remain strong, but unfortunately we have insufficient cash flow to meet our ongoing operational needs. As this is a cash flow issue and not a balance sheet issue, we found it necessary to initiate the CCAA filing in order to rebalance the Company's operations."
"The filing will provide the League Group with a defined process and the necessary time to restructure its affairs in order to emerge with a sustainable and profitable real estate development company," added Gant.