Ausam advised that on December 30, 2008, the Company and its wholly owned subsidiary, Noram Resources, Inc., filed voluntary Chapter 11 bankruptcy petitions with the United States Bankruptcy Court in Houston, Texas.
The Company will continue its ordinary course of business operations and will operate as a debtor-in-possession within the bankruptcy proceeding. These bankruptcy filings were necessitated by the Company's inability to secure new equity or debt financing on terms acceptable to the Company's current primary lender.
The Company hopes to use the protections provided by the Chapter 11 process to re-organize its capital structure and settle with its creditors. The Company believes that the Chapter 11 filing provides it with the best chance of preserving the value of its business assets and maximizing the return to all of the stakeholders of the Company.
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