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STATEMENT ISSUED BY MURRAY & ROBERTS

Release Date: 22/01/2001 17:47
Code(s): MUR
Wrap Text
MURRAY & ROBERTS HOLDINGS LIMITED
22 JANUARY 2001

AWI CANADA (AWIC) HAS BEEN PLACED INTO VOLUNTARY LIQUIDATION AFTER FAILING TO REACH AGREEMENT WITH CERTAIN CUSTOMERS AND ITS TRADE UNION IN TERMS OF AN ORDER OF THE ONTARIO COURT OF JUSTICE UNDER THE COMPANIES' CREDITORS ARRANGEMENT ACT (CCAA).
THIS FOLLOWS A PREVIOUS ANNOUNCEMENT BY MURRAY & ROBERTS THAT A DETERIORATION IN AWIC'S PERFORMANCE SINCE AUGUST 2000 RESULTED IN A DECISION NOT TO ADVANCE FURTHER FUNDING TO SUPPORT AWIC'S CAPITAL AND OPERATING CASH REQUIREMENTS. IN ITS STATEMENT ISSUED ON 18 DECEMBER 2000, MURRAY & ROBERTS ANNOUNCED THAT AWIC HAD SOUGHT AND OBTAINED AN ORDER OF THE ONTARIO SUPERIOR COURT OF JUSTICE UNDER THE CCAA. THIS PROTECTED AWIC FROM LEGAL PROCEEDINGS BY ITS CREDITORS FOR A PERIOD OF 34 DAYS, ALLOWING IT TO DEVELOP A PLAN OF COMPROMISE OR ARRANGEMENT AWIC WAS UNABLE TO REACH AGREEMENT ON THE MAIN ISSUES REQUIRED TO DEVELOP A PLAN OF COMPROMISE OR ARRANGEMENT AND, AS A CONSEQUENCE, THE COURT ENDED THE CCAA ORDER AND APPROVED AWIC'S VOLUNTARY LIQUIDATION UNDER A COURT-APPOINTED TRUSTEE.
MURRAY & ROBERTS CHIEF EXECUTIVE, BRIAN BRUCE SAID: "WE BELIEVE THAT WE HAVE TAKEN RESPONSIBLE ACTION REGARDING AWI CANADA THAT IS IN THE BEST INTERESTS OF OUR SHAREHOLDERS."
BRUCE ADDED THAT THE OTHER AWI PLANTS IN SOUTH AFRICA AND THE UNITED KINGDOM ARE OPERATING SUCCESSFULLY ON AN INTEGRATED BASIS AND AT FULL CAPACITY. ENDS

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