Railpower considering liquidation

By Caroline Salls

Pittsburgh, April 3 - Railpower Technologies Corp. is continuing to consider its restructuring alternatives, which could include liquidation procedures, according to a company news release.

According to the release, the company has received expressions of interest from prospective transaction partners, none of which were likely to enhance recoveries for creditors beyond liquidation value.

Railpower said it is not likely that any liquidation procedures would generate any value for shareholders.

The company said its Companies' Creditors Arrangement Act stay runs through April 7, and Railpower is still deciding whether to seek an extension.

Even if any extension is obtained, Railpower said it intends to allow the Toronto Stock Exchange to enforce any rights it may have as part of its review of the eligibility for continued listing of the company's securities, which will likely lead to delisting.

Railpower and its Railpower Hybrid Technologies Corp. U.S. subsidiary filed for Companies' Creditors Arrangement Act protection in the Quebec Superior Court on Feb. 4, and Railpower's court-appointed monitor made a Chapter 15 bankruptcy filing for the company in the U.S. Bankruptcy Court for the Western District of Pennsylvania on Feb. 5.

Based in Toronto, Railpower produces energy technology systems for the transportation sector. The Chapter 15 case number is 09-10198.

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