>>>>>>> Update From BSR Executive Committee <<<<<<<
Since my last report significant steps have been taken to return Bresea to active status in a normal fashion (i.e., without the need for share dilution via a take-over such as MacDonald Oil's attempt).
As of July 21, 1999 Justice C.S. Brooker of the Alberta Court of Queen's Bench has granted an Order authorizing the Interim Receiver PricewaterhouseCoopers (PWC) to appoint a Shareholder's Advisory Committee whose terms of reference -- "shall include:
a) to provide guidance to the Interim Receiver regarding the business affairs of the corporation;
b) to provide guidance to the Interim Receiver in connection with any possible settlement discussions of the claims against Bresea;
c) to provide guidance to the Interim Receiver as to whether a shareholders' meeting and formal election of directors is feasible and desirable;
d) if a shareholders' meeting is to be held to elect directors, to provide guidance to the Interim Receiver in the selection of a slate of qualified candidates to stand for election;
e) to provide guidance to the Interim Receiver in the event of a take-over bid for the shares of Bresea or any other corporate transaction; and
f) to provide guidance to the Interim Receiver in regards of all derivative actions made on behalf of Bresea."
PWC nominated five individuals as Shareholder's Advisory Committee members. At this time Paul F. McDonald, Jim Porter, John A. Ryan and Rodney C. Steel (myself) have accepted and participated in a first (preliminary) meeting. In my opinion, PWC has selected a group of people all of whom sincerely wish to return Bresea to shareholder control in the most expeditious, but conservative, way possible.
With respect to the MacDonald Oil take-over attempt, although 22M out of 65M shares were tendered, the staffs of the Alberta and Ontario Securities Commissions have placed Bresea under a temporary "cease trade" order due to perceived "deficiencies" in the offer. A hearing concerning this matter has been scheduled for August 9, 1999. By the way, as I understand the situation, Frank Smeenk of MacDonald Trading did not complete the deal for the 8M Bresea shares that Bre-X owns. I believe the offer expired un-exercised.
As stated in the original solicitation from PWC, the committee members are now under very strong disclosure restrictions so the only postings I can make will consist of publicly available information. I will try to make that type of information available as soon as possible.
For those of you who may have misplaced it, here is the URL to the discussion web site we are using for quick updates:
stockhouse.com
Rod Steel
Secretary, Executive Committee, BSR Group of Shareholders; and
Member, Bresea Shareholders' Advisory Committee |
