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Microcap & Penny Stocks : FMA / FracMaster -- Ignore unavailable to you. Want to Upgrade?

To: StockPro who wrote (207)	5/13/1999 8:11:00 PM
From: CharlieChina	Read Replies (1) \| Respond to of 233

Thursday May 13, 6:23 pm Eastern Time Company Press Release SOURCE: Alfred H. Balm Alfred H. Balm GENEVA, SWITZERLAND, May 13 /CNW-PRN/ - Alfred H. Balm former Chairman and Chief Executive Officer of Fracmaster Ltd. today confirmed that he and an investors group filed with the Court of Queen's Bench of Alberta a Plan of Arrangement to recapitalize the oil and gas services company which is currently subject to the Companies' Creditors Arrangement Act. The Plan put forward provides for the continuation of the Company which will be well positioned to take advantage of the current recovery in the oil and gas services sector. Aspects of the Plan deal with the secured creditors, the unsecured creditors and the existing shareholders. If Mr. Balm's Plan is accepted, the Bank Syndicate will recover 65% of its debt immediately and the unsecured creditors will be paid 20% over a specified period. While all of the shareholders, including Mr. Balm, will be subject to a 25 for 1 share roll back, all existing shareholders will continue to own a meaningful interest in the Company, with no further investment required. Warrants and rights to acquire additional shares, on the same basis as the group are investing in equity, will be issued to the creditors and the shareholders, subject to regulatory approval. Mr. Balm stated: ''With an initial investment of $90 million in equity and subordinated convertible debt, the Company will emerge from this process with a strong balance sheet and be in a strong competitive position. This will benefit existing employees as well as investors. I have been extremely gratified with the support of the employees, the shareholders, and the unsecured creditors for our Plan.'' Application will be made on May 14, 1999 for directions respecting the Plan of Arrangement by the Court of Queen's Bench. If successful, the Court will order meetings of each class of creditors and the shareholders to consider the Plan on July 19, 1999. The Plan will not become effective until a final Court Order following the meetings of creditors and shareholders. Certain aspects of the Plan are also subject to applicable securities law. Mr. Balm also advised that, in connection with the proposed Plan of Arrangement, he will be discontinuing most of the actions which he recently commenced to recover the amount of the first installment under Installment Receipts issued on his sale of 67.5% of Fracmaster in 1997. ''I continue to believe that the money is owing to me and that the courts would not permit legal obligations to be so easily avoided'', Mr. Balm said. ''However, I prefer to look to the future of Fracmaster. In order to accommodate implementation of the Plan of Arrangement, taking possession of these shares is the most appropriate course. I believe it is the best for the Company that this Plan of Arrangement proceed.'' Mr. Balm has instructed legal counsel to continue with at least one case in order to establish the legal principles which permit Instalment Receipts to regain acceptance in Canada as a financing technique. SOURCE: Alfred H. Balm