Fortress Global Enterprises Announces Restructuring Proceedings Pursuant to the Comanies' Creditors Arrangement Act
December 16, 2019
VANCOUVER, B.C. (News release) -- Fortress Global Enterprises Inc. announces that its senior secured lenders have filed an application with the Superior Court of Québec to commence restructuring proceedings in respect of the Company and certain of its material subsidiaries under the Companies' Creditors Arrangement Act ("CCAA"). Deloitte Restructuring Inc. (the "Monitor") is proposed to be appointed as monitor. Details of the CCAA filing and related matters will soon be available on the Monitor's website. The application is scheduled to be heard in Court on Monday, December 16, 2019.
The Company will not oppose the application. All of Fortress' existing members of the Board of Directors, other than Giovanni Iadeluca, as well as Kurt Loewen, the Company's Chief Financial Officer, intend to resign effective immediately prior to any CCAA order being issued. Mr. Iadeluca is expected to continue in his role as President, Chief Executive Officer and sole director of the Company to provide support to the Monitor in respect of the proceedings.
Trading in the common shares of the Company and the convertible debentures on the Toronto Stock Exchange (the "TSX") is expected to be halted on the next trading day. The Company expects that the previously announced remedial delisting review by the TSX will be accelerated and the Company's common shares and convertible debentures will soon be delisted from trading on the TSX. In addition, given the filing for protection under the CCAA and assuming the initial order is granted, the Company believes that, irrespective of the outcome of the CCAA proceedings, there is no assurance that there will be any recoverable or residual value in either Fortress' common shares or convertible debentures.