They ARE toast>>
We do not have sufficient funds to meet our financial obligations over the next twelve months. During the three months ending September 30, 2006, Air Arabia, a large client of the Company in the Middle East, terminated their contract with the Company, causing a significant loss of recurring revenue. In addition, ACOA, a major creditor of the Company caused the debt owing them to become due and payable. The management believes that the aggregate value of the Companies' assets is substantially less than that of its liabilities to its creditors.
As a result of the foregoing, >>>the Company and its subsidiaries<<< filed with the Queens Bench of the Province of New Brunswick, Canada, a Notice of Intention to Make a Proposal under the Canadian Bankruptcy and Insolvency Act (the "Notice of Intention"), as further discussed below.
The Notice of Intention was filed by the Company on August 7, 2006. On October 4, 2006, the proposal submitted by InteliSys Aviation Systems of America Inc. (the "Registrant") and its subsidiaries in the Court of Queen's Bench of the Province of New Brunswick, Canada was approved by the Court.
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