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Laidlaw Announces Exit from Chapter 11
Naperville, IL, June 23, 2003
Laidlaw International, Inc. (TSX: BUS) announced
today that it has emerged from the chapter 11 reorganization
process. The Company officially concluded its reorganization
today after completing all required actions and satisfying
or reaching agreement with its creditor constituencies on
all remaining conditions to its Third Amended Plan of Reorganization.
This Plan was confirmed by the U. S. Bankruptcy Court for
the Western District of New York by order dated February 27,
2003.
“This is a very memorable day for the
Company,” said Kevin Benson, Laidlaw International President
and Chief Executive Officer. “It marks the end of a
challenging period for all involved in the reorganization
process. It also ends the questions and uncertainty concerning
the future, which have surrounded the company for the past
three years. The company emerges with a strong balance sheet
and confident that, with the resources now available to it,
it has the ability to realize on its full potential. I would
particularly like to recognize and thank the many employees,
customers and creditors who have continued to support us through
this period. We look forward to achieving the results that
underlined their confidence in the Company.”
As a part of its emergence from chapter 11,
Laidlaw International, Inc. obtained exit financing of approximately
$1.225 billion. Approximately $1.0 billion of this financing
was used to fund a portion of the distributions to Laidlaw’s
creditors. In accordance with the Plan of Reorganization,
the Company completed an internal corporate restructuring,
in which Laidlaw International, Inc. acquired all of the assets
of Laidlaw Inc., a Canadian corporation.
Pursuant to the Plan, Laidlaw International
domesticated into the United States as a Delaware corporation.
In doing so it issued approximately 103.8 million shares of
new common stock for distribution to Laidlaw Inc., creditors.
Approximately 31.2 million of these shares were issued to
holders of Laidlaw bank debt claims (Class 4 under the Plan);
approximately 58.1 million to holders of Laidlaw bond debt
claims (Classes 5 and 5 A under the Plan) and approximately
10.7 million will be available for distribution to holders
of general unsecured claims (Class 6 under the Plan). In addition,
approximately 3.8 million shares were issued to a trust in
connection with the Company’s settlement with the United
States Pension Benefit Guaranty Corporation relating to the
funding level of certain subsidiary pension funds.
Consistent with the Plan, Laidlaw Inc’s.,
prior common stock was cancelled as of June 23, 2003. The
new shares of Laidlaw International, Inc. being issued to
certain creditors in accordance with the Plan, were listed
on the Toronto Stock Exchange immediately following exit.
In the United States, the new common stock is expected to
trade on the over-the-counter market. It is the Company’s
intention to seek a listing of the common stock in the U.S.
as soon as practicable.
Forward-Looking Statements
Certain statements contained in this press
release that are not historical facts, including statements
regarding the Company's future prospects and expectations
with respect to the listing of its common stock in the U.S.,
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements
involve certain risks, uncertainties and assumptions that
include, but are not limited to: the successful completion
of the registration of the common stock of the Company with
the U.S. Securities and Exchange Commission, particularly
in the light of the scope limitation that is contained in
the audit report for the financial statements, and, upon registration
of such shares with the SEC, obtaining approval for the listing
of these shares on the New York Stock Exchange or Nasdaq National
Market; the Company's ability to continue as a going concern;
general economic conditions; and other factors detailed from
time to time in the Company's filings with the SEC. Should
one or more of these risks or uncertainties materialize, actual
outcomes may vary materially from those indicated.
Laidlaw is a holding company for North America's
largest providers of school and inter-city bus transport,
public transit, patient transportation and emergency department
management services.
Contact: Geoff
Mann, Vice President and Treasurer
Laidlaw International, Inc.
(905) 336-1800
website: www.laidlaw.com
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