TORONTO/MONTREAL – Wireless network operator Look Communications said Wednesday that the Ontario Superior Court of Justice has granted the company permission to proceed with the transfer of assets, thereby allowing Look to proceed with its reorganization plan, previously announced on Oct.10, 2007.
The opposition by Bell Canada to the transfer of these assets, Look said in a statement, was “jeopardizing” the Plan which allowed for the maintenance of the Corporation’s deferred tax assets.
“In spite of the benefits, Bell continued its very consistent behaviour of harassment and, accordingly, Look was once again forced to go to the Ontario Superior Court of Justice to have the asset transfer approved thereby permitting the Plan to proceed,” the company said.
With the Court’s decision Nov. 7th, Look can now start implementing the Plan which, when completed, will maintain about $310 million of its losses, it said. As a result, the sale by Look of any or all of its major assets would result in proceeds to the Corporation of up to approximately $620 million being received on a tax-free basis, thereby enhancing shareholder value and benefiting all stakeholders, including Bell.
Meanwhile, Look also complained that Bell has “knowingly continued to excessively and incorrectly invoice Look for more than double the terms of the July 31 Order of $360,000 per month”.
“Look believes these deliberate and erroneous billings are a form of Bell’s continuous harassment of Look,” reads the release.
