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Poseidon Concepts Corp. Obtains CCAA Protection Order and Provides Internal Investigation Update

Poseidon Concepts Corp. Obtains CCAA Protection Order and Provides Internal 
Investigation Update 
CALGARY, ALBERTA -- (Marketwired) -- 04/09/13 -- Poseidon Concepts
Corp. ("Poseidon" or the "Company") (TSX:PSN) and various affiliates
obtained an initial order (the "Order") from the Alberta Court of
Queen's Bench (the "Court") providing creditor protection under the
Companies' Creditors Arrangement Act (Canada) ("CCAA"). Concurrent
with the CCAA filing, Mr. Dean Jensen and Mr. Harley Winger tendered
their resignations as directors to the Company, the Special Committee
was disbanded and Mr. Dawson has resigned as the Company's Interim
CEO. The Company's Board of Directors is now comprised of Mr. Scott
Dawson and Mr. Neil Richardson. 
While under CCAA protection, the Company will continue operating,
under the supervision of a Court- appointed monitor,
PricewaterhouseCoopers Inc. (the "Monitor"), who will be responsible
for reviewing Poseidon's ongoing operations, assisting with the
development and filing of a Plan of Arrangement ("Plan") that is
established by the Company, liaising with creditors and other
stakeholders and reporting to the Court. The Board of Directors will
be primarily responsible for determining whether a Plan for
restructuring the Company's affairs is feasible. In addition, the
Company has secured interim financing from a third party lender (the
"Interim Lender") to finance Poseidon's working capital requirements
and other general corporate purposes and capital expenditures.
Poseidon has retained Ernst & Young Orenda Corporate Finance Inc. as
its financial advisor (the "Financial Advisor") to assist the Company
with, among other things, soliciting and evaluating offers for a
transaction involving Poseidon's business. 
As provided for under the Order, the Financial Advisor will conduct a
process to solicit offers for a transaction involving Poseidon's
business, which may include a sale of all of Poseidon's assets, a
reorganization, a recapitalization or a restructuring of its existing
loans. The process will commence with information packages describing
Poseidon's assets being distributed to prospective bidders on or
about April 10, 2013. Bids will be due by not later than May 15, 2013
(the "Bid Deadline"). Unless extended by the Monitor in consul
tation
with the Financial Advisor, secured creditors, Interim Lender and
Poseidon, a proposed transaction must be approved by the secured
lenders, and close within 30 days of the Bid Deadline. The completion
of a transaction will be subject to the satisfaction of a number of
conditions, including Court approval. Further details regarding the
CCAA process will be available at http://www.pwc.com/car-poseidon. 
CCAA protection enables the Company to continue operating until the
CCAA status changes. The implications of this process for the
Company's shareholders is not expected to be known until the end of
the restructuring process. If Poseidon has not filed a Plan or
obtained an extension of the CCAA protection by May 9, 2013,
creditors and others will no longer be stayed from enforcing their
rights. Poseidon will be taking steps to have the Court's CCAA Order
recognized in the United States. 
As previously announced in its February 14, 2013 press release, the
Special Committee (along with its advisors) has continued its review
and assessment of, among other things, the Company's public
disclosure of its financial results. This included the review and
assessment of the Company's financial statements for the year-ended
December 31, 2011 (the "2011 Annual Financials"). Based upon the
investigation by the Special Committee, questions have arisen with
respect to the recorded revenues in the 2011 Annual Financials. At
this time, it is uncertain whether or not a restatement of the 2011
Annual Financials is required. 
This news release contains certain forward-looking statements and
other information (collectively "forward-looking information") about
our current expectations, estimates and projections. Forward looking
information is often identified by words such as "anticipate",
"intend", "believe", "expect", "plan", "forecast", "target", "could",
"focus", "vision", "goal", "proposed", "scheduled", "milestone",
"outlook", "potential", "may", "looking forward to", or similar
expressions and includes, but is not necessarily limited to,
suggestions of future outcomes, including statements about the status
of the Company's 2011 Annual Financials, the Company's restructuring
process and the development and filing of a Plan. Readers are
cautioned not to place undue reliance on forward-looking information
as our actual results may differ materially from those expressed or
implied in the forward-looking information. Developing
forward-looking information involves reliance on a number of
assumptions and consideration of certain risks and uncertainties,
some of which are specific to Poseidon and others that apply to the
industry generally. The factors or assumptions on which the
forward-looking information is based include without limitation: the
results of the Special Committee's investigation, the outcome of the
negotiations with the Company's stakeholders, the Company's ability
to successfully submit a timely plan to its creditors and the Court
under the CCAA and to resolve its operational, legal and financial
difficulties, our ability to generate sufficient cash flow from
operations to meet our current and future obligations; our
expectations of the demand for tank systems and other product
offerings and the general activity of the oil and gas industry; and
assumptions inherent in our current guidance, including: foreign
exchange and interest rates; our projected capital investment levels;
the flexibility of capital spending plans and the associated source
of funding; and other risks and uncertainties described from time to
time in the filings we make with securities regulatory authorities. 
Actual results could differ materially from those currently
anticipated due to a number of factors, risks and uncertainties. Such
risks and uncertainties include, without limitation, risks associated
with the outcome of the Special Committee's review, the contents of
the Company's restated financial statements, litigation involving the
Company, risks associated with dependence on manufacturers of the
Poseidon tank systems; the discretion of the Court in CCAA
proceedings; operating risk liability; demand for Poseidon's tank
systems; levels of competition in the fracturing fluid storage
industry; the ability of Poseidon to attract and retain clientele;
the impact of changes in marketing initiatives; the ability of
Poseidon to fund its ongoing capital requirements; delays resulting
from or inability to obtain required regulatory approvals; the impact
of general economic conditions in Canada, the United States and
globally; industry conditions; changes in laws and regulations
(including the adoption of new environmental laws and regulations)
and changes in how they are interpreted and enforced; the lack of
availability of qualified personnel or management; fluctuations in
foreign exchange or interest rates; and stock market volatility.
Readers are cautioned that the foregoing list of factors is not
exhaustive. All subsequent forward-looking statements, whether
written or oral, attributed to Poseidon or persons acting on its
behalf are expressly qualified in their entirety by these cautionary
statements. Additional information on the foregoing risks and other
factors that could affect Poseidon's operations and financi
al results
are on file with Canadian securities regulatory authorities and may
be accessed through the SEDAR website (www.sedar.com). Furthermore,
the forward-looking statements contained in this news release are
made as at the date of this news release and Poseidon does not
undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information future events or otherwise, except as may be required by
applicable securities laws.
Contacts:
Poseidon Concepts Corp.
http://www.poseidonconcepts.com/
 
 
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