CALGARY, Alberta--(BUSINESS WIRE)--Walton Edgemont Development Corporation (the “Corporation”) is pleased to announce that it has entered into a purchase and sale agreement dated October 10, 2017 (the "Sale Agreement") with Rohit Communities Inc. ("Rohit"), pursuant to which the Corporation has agreed to sell its interest in approximately 123.4 acres of the "Edgemont" properties located in Edmonton, Alberta (the "Properties") to Rohit (the "Transaction").
On April 28, 2017, the Corporation, Walton International Group Inc. ("WIGI") and certain affiliates, including the general partner of Walton Development and Management L.P. and the general partner of Walton Asset Management LP (collectively, the “WIGI CCAA Entities”) announced that they had obtained creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”) pursuant to an initial order granted by the Court of Queen’s Bench of Alberta (the "Court"). On May 9, 2017 the Corporation obtained a further court order for the implementation of a sale and investment solicitation process (the "SISP") which process was conducted within the CCAA proceedings under the supervision of Ernst & Young Inc., the Court-appointed monitor (the "Monitor"). As disclosed in the Corporation's press release dated August 25, 2017, qualified Phase 2 bidders in the SISP process were required to submit final binding offers in accordance with the SISP requirements by August 31, 2017, which offers were reviewed and evaluated by the Monitor and the Corporation. Rohit submitted the successful binding offer for the Properties in connection with the SISP process, and the Corporation and Rohit subsequently negotiated the terms of the Sale Agreement.
The Transaction is expected to close on November 23, 2017, and is subject to a number of customary conditions precedent, including the approval of the Court. The Sale Agreement contains customary terms and conditions for a transaction of this nature and represents disposition of the remaining real estate assets of the Corporation. Proceeds from the Transaction will be used to repay project debt, accrued liabilities and accounts payable. Following closing of the Transaction, the Corporation will complete the remaining construction and maintenance obligations and continue to collect outstanding recoveries owing to the Corporation in relation to its prior development activities. Early in 2018 the Corporation expects to present a plan of arrangement to its creditors that will allow for the orderly wind-up of the Corporation and ultimately a final distribution to creditors and equity holders.
The Corporation is managed by Walton Asset Management L.P. and the development of the project is managed by Walton Development and Management LP, both of which are members of the Walton Group of Companies (“Walton”).
Walton is a multinational real estate investment, planning, and development group concentrating on the research, acquisition, administration, planning and development of strategically located land in major North American growth corridors.
This news release, required by Canadian laws, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This news release contains forward looking information, and actual future results may differ from what is disclosed in this news release. The risks, uncertainties and other factors that could influence results are described in the prospectus and other documents filed with Canadian securities regulatory authorities and available online at www.sedar.com.