MONTREAL, Jan. 11 /PRNewswire-FirstCall/ - Haemacure Corporation announces that it has filed a notice of intention to make a proposal to its creditors under the Bankruptcy and Insolvency Act (Canada) and that its wholly-owned U.S. subsidiary sought court protection under Chapter 11 in the United States. The filings were made after the close of markets on Friday, January 8, 2010.
Haemacure's Board of Directors authorized these measures in light of Haemacure's financial condition and its inability to raise financing. The Board of Directors considers these measures to be in the best interests of Haemacure, its shareholders and creditors. The Board made this decision after thorough consultation with its professional advisors, both in Canada and the United States, and extensive consideration of all possible alternatives. The terms and conditions of the proposal to the creditors have not yet been determined by Haemacure.
Angiotech Pharmaceuticals, Inc., Haemacure's secured creditor, has agreed to provide financing to Haemacure in order to fund the insolvency proceedings and Haemacure's day-to-day operations, up to a maximum amount of US$1 million. The funds will be disbursed in accordance with a schedule agreed to by Haemacure and Angiotech.
Haemacure also announces that Mr. Marc Paquin has resigned as a director of Haemacure and no longer holds any position with Haemacure or its wholly-owned U.S. subsidiary. Mr. Paquin was previously President of Haemacure and a director and officer of the subsidiary company.