Walton Edgemont Development Corporation (the “Corporation”), Walton
International Group Inc. (“WIGI”) and certain affiliates, including the
general partner of Walton Development and Management L.P. and the
general partner of Walton Asset Management LP (collectively, the “WIGI
CCAA Entities”) announced today that they have obtained creditor
protection under the Companies’ Creditors Arrangement Act
(“CCAA”) pursuant to an initial order (the “Initial Order”) granted by
the Court of Queen’s Bench of Alberta.
The Initial Order authorizes the WIGI CCAA Entities to begin a
court-supervised restructuring and provides for a broad stay of
proceedings against the WIGI CCAA Entities in order to provide the
opportunity to finalize and present a CCAA plan to creditors for
approval. Under the terms of the Initial Order, Ernst & Young Inc. will
serve as the Court-appointed monitor (the “Monitor”) of the WIGI CCAA
Entities. The WIGI CCAA Entities are being advised by Bennett Jones LLP.
WIGI’s and the Corporation’s business has been adversely impacted by the
effects on the Alberta economy of the substantial and sustained drop in
energy prices that commenced in 2014. This has resulted in weakened
demand, reduced sales and revenues, and protracted project timing in
many of the Walton Group’s real estate developments. Given these
continued economic conditions, liquidity restraints and tightening
credit markets, it has become difficult to obtain financing extensions
and new project financing.
The Corporation, WIGI and their advisors, in consultation with the
Monitor, are currently assessing the best course forward for the WIGI
CCAA Entities. This includes an extensive review and evaluation of
potential restructuring alternatives that will maximize value for all
stakeholders of the WIGI CCAA Entities. During the CCAA proceedings, it
is expected that day-to-day operations will continue and interim
financing has been secured in order to carry on business. The WIGI CCAA
Entities have already undertaken substantial and meaningful steps to
reduce their costs in reaction to declining revenues and cash flows, and
will continue to pursue cost saving opportunities through this process.
Further news releases will be provided on an ongoing basis throughout
the CCAA process to provide further details in respect of the
restructuring plan as may be determined necessary.
A copy of the Initial Order and additional information regarding the
CCAA proceedings will be available on the Monitor’s website at www.ey.com/ca/wigi.
The Corporation is managed by Walton Asset Management L.P. and the
development of the project is managed by Walton Development and
Management L.P., both of which are members of the Walton Group of
This news release, required by Canadian laws, does not constitute an
offer of securities, and is not for distribution or dissemination
outside Canada. This news release contains forward looking information,
and actual future results may differ from what is disclosed in this news
release. The risks, uncertainties and other factors that could influence
results are described in the prospectus and other documents filed with
Canadian securities regulatory authorities and available online at www.sedar.com.