Hemosol receiver agrees to plan sponsor extension, continued CCAA funding

By Caroline Salls

Pittsburgh, June 23 - Hemosol Corp. interim receiver PricewaterhouseCoopers Inc. entered into an amendment to the conditional agreement to fund payments to Hemosol creditors that gives the plan sponsor more time to meet some conditions under the sponsorship agreement, according to a company news release.

In connection with the amendment, the plan sponsor and the receiver also entered into a revised financing term sheet under which the plan sponsor agreed to continue funding Hemosol through the Companies' Creditors Arrangement Act proceedings, up to a consensually agreed on amount.

In addition, the sponsorship agreement no longer requires the company to obtain a new license agreement with ProMetic Life Sciences Inc. as a condition precedent to concluding a successful restructuring of Hemosol under the CCAA and Business Corporations Act (Ontario).

The sponsorship agreement is subject to approval of Hemosol's creditors and the court on a proposed CCAA plan of compromise, and, unless waived by the plan sponsor, a plan of arrangement under the OBCA.

Hemosol, a Toronto biopharmaceutical company, filed for bankruptcy on Dec. 2, 2005 in the Ontario Superior Court of Justice.

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