July 14, 2015, Concord, ON – Armtec Infrastructure Inc. has closed the sale of substantially all of its assets to Armtec LP, or “New Armtec”, an affiliate of Brookfield Capital Partners Fund III LP.
As previously announced, the Brookfield transaction was approved by the Ontario Superior Court of Justice in Armtec’s proceedings under the Companies’ Creditors Arrangement Act (CCAA) proceedings.
Pursuant to the Brookfield transaction, New Armtec has acquired substantially all of the company’s assets on a going-concern basis, assumed substantially all of the company’s obligations to trade creditors and all employee obligations, and assumed the company’s revolving credit facility with its operating lenders and the company’s bonding agreement with Trisura Guarantee Insurance Company.
New Armtec did not assume any of the company’s obligations under its 8.875 per cent senior notes due 2017 or its 6.50 per cent convertible unsecured subordinated debentures due 2017.
The Brookfield transaction did not provide any recovery for the holders of the senior notes, convertible debentures or the company’s common shares.
Ernst & Young Inc. is serving as the court-appointed monitor as part of the CCAA proceedings. Documents relating to the CCAA proceedings are available on the monitor’s website at www.ey.com/ca/armtec.
A copy of the Brookfield purchase agreement will be available at www.sedar.com.
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