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Adaltis Inc. to file for creditor protection

^{Published on 2009-07-03 07:04:27, Last Modified on 2009-07-03 07:04:33 - Market Wire}
 

 MONTREAL, July 3 /CNW Telbec/ - Adaltis Inc. (TSX: ADS), an international in vitro diagnostic (IVD) company, today announced that it will seek court protection under the Companies' Creditors Arrangement Act (Canada) ("CCAA") in Canada. Application under the CCAA will be heard by the Quebec Superior Court on July 3, 2009. Adaltis' Board of Directors authorized the Corporation to take this action as the best alternative for the interests of the Corporation, its employees, customers, creditors and other stakeholders. Operations outside of Canada are not included in this filing. Adaltis' normal day-to-day operations are expected to continue without interruption. Adaltis remains focused on serving and supporting its customers during the restructuring process. Adaltis has also announced that it has entered into a Debtor-in-Possession (DIP) financing arrangement with Victoria Square Ventures Inc. for new financing in an amount of up to $3 million. This financing is subject to approval of the Quebec Superior Court. Adaltis took this decision after thorough consultation with its advisors and extensive consideration of all other alternatives. Adaltis will seek protection under the CCAA as its current cash on hand would not allow it to meet its current obligations. Caution Concerning Forward-Looking Statements This news release may contain forward-looking statements within the meaning of applicable Canadian securities legislation. These statements include those relating to statements that are not historical facts, and reflect the current intentions, plans, expectations and beliefs of Adaltis' management. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve known and unknown risks, uncertainties and other factors outside of management's control. A number of factors could cause actual results of Adaltis to differ materially from the results predicted in the forward-looking statements, including, but not limited to, risks associated with obtaining regulatory registrations, affecting our ability to achieve our strategy in China and other emerging markets, the successful and timely completion of our ongoing research and development efforts in particular related to Eclectica(TM), the launch of new products, the uncertainties of market factors and regulatory processes to which our business is subject, the ability to recover the value of our holdings of asset-backed commercial paper following the restructuring of the asset-backed commercial paper market, and the availability and terms of any financing. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the risks and uncertainties relating to the CCAA proceedings (the "CCAA Proceedings") including: any negative impacts on the Corporation's business, results of operations, financial position, cash management arrangements and limitations on the Corporation's ability to freely deploy its cash resources throughout the Corporation; relationships with employees, customers, creditors, suppliers and other stakeholders resulting from the CCAA Proceedings; the failure of the Corporation to obtain an initial court order substantially on the terms applied for or to obtain subsequent court orders extending the applicable stays of action and proceedings against the Corporation to permit it to propose a restructuring plan to affected creditors; the sufficient alternative debtor-in-possession financing during the CCAA Proceedings; the failure of the Corporation to obtain the requisite approvals of affected creditors or the court for any restructuring plan, or to successfully implement such a plan or obtain sufficient exit financing, if required, within the time granted by the court, which could result in substantially all of its debt obligations becoming immediately due and payable or subject to immediate acceleration, leading to the likely liquidation of the Corporation's assets; that the Corporation's existing common shares could have no material value in, and following the approval of, a restructuring plan and could be cancelled; and the potential that the Toronto Stock Exchange may suspend trading or delist the Corporation's common shares on or from such stock exchange as a result of the CCAA Proceedings. For additional information with respect to certain of these and other factors, refer to our Annual Information Form under the heading "Risk Factors" filed with the Canadian securities commissions. The forward-looking statements contained in this news release represent the expectations of Adaltis and its subsidiaries as at the date hereof and accordingly are subject to change after such date. However, Adaltis and its subsidiaries expressly disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. About Adaltis Inc. Adaltis is an international in vitro diagnostic company with a mission to become a leading provider of in vitro diagnostic products in emerging markets, with a particular focus on China. With the strategic advantage of its "state of the art" reagent manufacturing facility located in Shanghai, China, a complete IVD product offering targeting emerging markets, and a strong international sales and distribution platform, Adaltis is able to manufacture high-quality products in a low-cost GMP environment, in order to service existing markets in Europe, while providing a platform to penetrate the high-growth Chinese in vitro diagnostic market. Adaltis is headquartered in Montreal, with offices in China, Italy, Mexico and other parts of the world. 

For further information: David Gardner, Executive Vice President and Chief Financial Officer, Adaltis Inc., (514) 335-9922, ext. 228, [ david.gardner@adaltis.com ]