BROSSARD, QUEBEC, May 22 (MARKET WIRE) --
Railpower Technologies Corp. (TSX: P) provides its fifth bi-weekly
Default Status Report under National Policy 12-203 - Cease Trade Orders
for Continuous Disclosure Defaults, pursuant to which Railpower announced
that the filing of its audited financial statements, management's
discussion and analysis ("MD&A") and related CEO and CFO certifications
for the year ended December 31, 2008 will be delayed beyond the statutory
deadline of March 31, 2009 and that its financial statements, MD&A and
related CEO and CFO certifications for the first quarter ended March 31,
2009 would not be filed by the statutory deadline of May 15, 2009.
As previously stated, since the focus of Railpower is currently on
preserving cash during the course of its restructuring process under the
Companies' Creditors Arrangement Act (Canada), it was deemed in the best
interests of Railpower and its stakeholders to delay the preparation and
filing of the financial statements, MD&A and related CEO and CFO
certifications for the time being. The postponement will also allow
Railpower's senior management to fully focus on Railpower's restructuring
process. Railpower does not know at this time when and if it would be in
a position to prepare and file its financial statements, MD&A and related
CEO and CFO certifications, as such preparation and filing will be driven
by the outcome of its restructuring efforts.
Railpower reports that since announcing the original Notice of Default on
March 13, 2009 and filing its first, second, third and fourth Default
Status Reports on March 27, 2009, April 9, 2009, April 24, 2009 and May
8, 2009 respectively, except as otherwise publicly disclosed there have
not been any additional material changes to the information contained
therein; nor any failure by Railpower to fulfill its intentions as stated
therein with respect to satisfying the provisions of the alternative
information guidelines, and, except as disclosed in this press release,
there are no additional defaults or anticipated defaults subsequent to
such announcement.
Except as otherwise publicly disclosed and as disclosed in this press
release, there have been no additional material changes respecting
Railpower and its affairs. Railpower intends to file its next Default
Status Report by June 5, 2009.
Railpower also announced today that the Quebec Superior Court issued an
order providing Railpower with an additional period of protection under
the Companies' Creditors Arrangement Act (Canada) ("CCAA"). The initial
order, which was first granted under the CCAA in favour of Railpower on
February 4, 2009 and subsequently extended on March 4, 2009, April 7,
2009, April 20, 2009 and May 20, 2009, has now been further extended
until June 2, 2009, during which time creditors and other third parties
will continue to be stayed from taking steps against Railpower. The
purpose of the stay of proceedings is to provide Railpower with an
opportunity to develop a comprehensive plan of arrangement for
consideration by its creditors and the courts.
The Board of directors has also announced the departure of Mr. Pierre
Labelle, Railpower's interim Chief Financial Officer. The Board wishes to
thank Mr. Labelle for his contributions to Railpower.
About Railpower
Railpower (TSX: P), (www.railpower.com) is engaged in the development,
construction, marketing and sales of high performance, clean locomotives
and power plants for the transportation and related industries. Railpower
has designed and is marketing a range of locomotives for the North
American low and medium horsepower locomotive market. It has also
designed and is marketing hybrid power plants for rubber tyred gantry
cranes (Eco-Cranes(R)). Its technologies have broader potential and
applications in other markets and industries.
Caution regarding forward-looking statements
Certain statements contained in this release contain forward-looking
statements. When used in this document, the words "may", "would",
"could", "will", "intend", "plan", "anticipate", "believe", "estimate",
"expect" and similar expressions may be used to identify forward-looking
statements. Those statements reflect our current views with respect to
future events or conditions, including prospective results of operations,
financial position, and predictions of future actions, plans or
strategies. Certain material factors and assumptions were applied in
drawing our conclusions and making those forward looking statements. By
their nature, those statements reflect management's current views,
beliefs and assumptions and are subject to certain risks and
uncertainties, known and unknown, including, without limitation, the
ability to secure new orders or new financing, our ability to secure the
sale of our securities or assets, our ability to comply with the
covenants and conditions contained in our outstanding convertible
debentures with Ontario Teachers Pension Plan Board, the ability to
retain our employees, product development or manufacturing delays, the
ability of our current manufacturing suppliers to meet our production
demands in terms of quantity, quality and costs, our ability to reach a
satisfactory agreement with another supplier if necessary or, the ability
to restart the construction of our manufacturing
facility and if restarted, to construct our manufacturing facility on
time and within the forecasted budget, changing environmental
regulations, the ability to attract and retain business partners, the
acceptance of our existing and new products, future levels of government
funding, the need to obtain and maintain proprietary rights over our
technology, competition from other technologies or new competitors, the
ability to access the capital required for research, product development,
operations and marketing, the need to generate positive cash flow in the
foreseeable future, potential legal liability related to the recall of
our Green Goat(R) locomotives, changes in energy prices and currency
levels. 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 and Chapter 15 proceedings
(collectively, the "Insolvency 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
company; relationships with employees, customers, creditors, suppliers
and other stakeholders resulting from the Insolvency Proceedings; the
failure of the Corporation or its U.S. subsidiary (collectively, the
"Applicants") to obtain court approval allowing the sale of assets and/or
subsequent court orders extending the applicable stays of actions and
proceedings against the Applicants to permit them to propose a
restructuring plan to affected creditors; the adequacy of the
Corporation's available cash on
hand to fund its ongoing operations or ability to arrange for sufficient
alternative debtor-in-possession financing during the Insolvency
Proceedings; the failure of the Corporation to obtain the requisite
approvals of affected creditors or the courts for any restructuring plan,
or to successfully implement such a plan or obtain sufficient exit
financing, if required, within the time granted by any 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 Applicants' assets; that the Corporation's
existing securities could have no material value in, and following the
approval of, a restructuring plan and could be cancelled. Many factors
could cause our actual results, performance or achievements to be
materially different from any future results, performance or achievements
that may be expressed or implied by these forward-looking statements.
Should one or more of these risks or uncertainties materialize, or should
the assumptions underlying our projections or forward-looking statements
prove incorrect, our actual results may vary materially from those
described in this report as intended, planned, anticipated, believed,
estimated, or expected. Unless otherwise required by law, we do not
intend or do not assume any obligation to update these forward-looking
statements whether as a result of new information, plans, events or
otherwise.
Contacts:
Railpower Technologies Corp.
Kamila Wirpszo, Vice-President,
General Counsel and Corporate Secretary
450-678-5277 ext.518
Toll Free: 1-866-678-5277
kwirpszo@railpower.com
Copyright 2009, Market Wire, All rights reserved.
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