VICTORIA, BC / ACCESSWIRE / November 10, 2015 / Crailar Technologies Inc. (OTCQB: CRLRF) (TSXV: CL) ("Crailar" or the "Company"), announced today that the Company and certain of its subsidiaries have obtained an Initial Order from the Supreme Court of British Columbia under the Companies' Creditors Arrangement Act ("CCAA"). The terms and conditions of the restructuring plan have not yet been determined by Crailar.
The Court granted protection under the CCAA for an initial period expiring on Wednesday November 25, 2015 to be extended as required and approved by the Court. The Court has set a further hearing date of November25, 2015, at which time an extension of the protection under the CCAA will be sought. The CCAA filing applies to Crailar, Crailar Inc., Hemptown USA Inc., 0697872 B.C. Ltd., Crailar Fiber Technologies Inc. and HTNaturals Apparel Corp. While Crailar and its subsidiaries are under CCAA protection, creditors and others are stayed from pursuing any claims or enforcing any rights against the companies.
After careful consideration of all available alternatives; the Board of Directors of the Company determined that it was in the best interests of the Company and all of its stakeholders to file for an application for creditor protection under the CCAA. Under the CCAA proceedings, it is expected that the Company's operations will continue uninterrupted in the ordinary course of business and obligations to employees, key suppliers of goods and services and obligations to the Company's customers, after the filing date, will continue to be met on an ongoing basis. Under the Initial Order the Company's management will remain responsible for the day-to-day operations of the Company and the Board of Directors has remained intact. Crailar expects to apply for recognition of the Initial Order under chapter 15 of title 11 of the US Code.
Pursuant to the Initial Order, The Bowra Group Inc. has been appointed as monitor in the CCAA proceeding (the "Monitor").
All inquiries regarding the CCAA proceeding should be directed to the Monitor (Martin Hyatt, (604) 689-8939 Information about the CCAA proceeding, including all Court Orders and the Monitor's reports, will be available on the Monitor's website at www.bowragroup.com/engagements.
About CRAiLAR Technologies Inc.
CRAiLAR Technologies Inc. brings cost-effective, sustainable, bast fiber-based products to market. These environmentally friendly, natural fiber alternatives offer equivalent or superior performance characteristics to cotton, wool, wood or fossil-fuel based fibers. The Company's business operations consist primarily of licensing its CRAiLAR(R) processing technologies to produce CRAiLAR(R) fibers in the non-woven, yarn and textile industries. CRAiLAR(R) Flax Fiber is a sustainable alternative fiber with performance, consumer preference, environmental advantage, and 'natural feel' suitable for businesses and consumers in the woven and non-woven markets.
Crailar is headquartered in Victoria, British Columbia, Canada and its common shares trade on the TSX Venture Exchange under the symbol CL and its debentures under CL.DB. Crailar's common stock is also quoted on the OTC Bulletin Board or the OTCQB tier of the OTC Markets Group, Inc. under the symbol "CRLRF".
Forward-Looking Statements
Certain matters set forth in this news release, including statements with respect to the CCAA proceedings, the operations of Crailar, liquidity and the ability of Crailar to meet its obligations are forward looking. These forward-looking statements reflect management's current views and are based on certain assumptions including assumptions as to future operating conditions and courses of action, economic conditions and other factors management believes are appropriate. Such forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in these statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Investor and Media Contact:
Lesley Hayes
Board Chair and Chief Executive Officer
(250) 658-8582
ir@crailar.com
SOURCE: CRAiLAR Technologies Inc.
