EarthFirst Canada Inc. to Continue to Evaluate Strategic Alternatives Under CCAA Protection
November 4, 2008
Calgary, Alberta
EarthFirst Canada Inc. ("EarthFirst") (TSX: EF, EF.WT) today announces that it has obtained creditor protection under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”) pursuant to an Order granted on November 4, 2008 by the Court of Queen’s Bench of Alberta, Judicial Centre of Calgary (the “Court”).
The CCAA filing follows a review of EarthFirst’s strategic alternatives by a Special Committee of EarthFirst's Board of Directors. EarthFirst's efforts to pursue strategic alternatives has been severely hindered by the unprecedented crisis in the global financial markets which has impacted on EarthFirst's ability to raise financing or to complete a sale of the company, details of which will soon be available on the website www.ey.com/ca/EarthFirst under the insolvency and restructuring link. It was determined by the Board of Directors that, as a result of EarthFirst's current financial resources and the inability of EarthFirst to complete a fulsome sale process in sufficient time to address its financial condition, seeking CCAA protection would be in the best interests of EarthFirst and all of its stakeholders. While under CCAA protection, EarthFirst will continue with its day-to-day operations and will continue with its efforts to pursue strategic alternatives. EarthFirst further expects CCAA protection will allow corporations currently engaged in the sale process additional time for due diligence.
