TORONTO, ONTARIO -- (Marketwire) -- 12/12/12 -- Frontline Technologies Inc. ("Frontline Technologies") (TSX VENTURE: FLC), a provider of technology-based equity and options trading services, announces that, after consideration of all viable alternatives, it is in the best interests of Frontline Technologies and its stakeholders for Frontline Technologies to commence restructuring proceedings under the Bankruptcy and Insolvency Act ("BIA").
Accordingly, on Tuesday, December 11, 2012, Frontline Technologies filed a notice of intention to make a proposal under the BIA (the "Notice of Intention") with the Official Receiver. The Notice of Intention has granted Frontline Technologies BIA protection for an initial period of 30 days, expiring on January 10, 2013. While under protection, creditors and others are stayed from enforcing any rights against Frontline Technologies, giving Frontline Technologies the opportunity to pursue restructuring alternatives.
Frontline Technologies' subsidiary, Frontline Technologies Corporation (the "Subsidiary"), which offers IT infrastructure support and managed services, also filed a notice of intention to make a proposal under the BIA on Tuesday, December 11, 2012. The Subsidiary's normal day-to-day IT infrastructure operations are expected to continue without interruption.
Frontline Technologies' liquidity position has deteriorated as a result of various factors, including, but not limited to, negative cash flow from operations, an inability to secure additional sources of financing and increasing pressure to make payments to its creditors. The BIA restructuring proceedings will allow Frontline Technologies and the Subsidiary to deal decisively with their cost and debt burdens and to narrow their strategic focus in an effective and timely manner. Frontline Technologies made this decision with the unanimous approval of its Board of Directors after thorough consultation with its advisors and extensive consideration of all other alternatives.
Frontline Technologies has developed a plan to wind-down its trading platform business while it transitions its customers on an expedited basis to new service providers. The wind down process may include speaking to parties interested in acquiring the trading platform business.
Pursuant to the Notices of Intention, Duff & Phelps Canada Restructuring Inc. has been appointed as proposal trustee that will monitor the ongoing operations of Frontline Technologies and of the Subsidiary while under BIA protection (in such capacities, the "Trustee"). All inquiries regarding the BIA proceedings should be directed to the Trustee (Noah Goldstein - 416-932-6207). Information about the BIA proceeding will be available on the Trustee's website at www.duffandphelps.com/restructuringcases.
About Frontline Technologies
Frontline Technologies Inc. is a provider of trading technology services for equities and options and also offers IT infrastructure support and managed services. The Board of Directors of Frontline Technologies currently consists of Keith Harris, Deb Robinson, Mo Hirani, Laurie Mara Clark, Hoss Astaraki and Ian Camacho. Frontline Technologies is listed on the Toronto Venture Exchange (Ticker FLC) - Additional information is available at www.frontline.ca.
This news release includes certain forward-looking information that is based upon current expectations, which involve, among other things, risks and uncertainties associated with Frontline Technologies' business and the restructuring process. Forward-looking information in this news release includes, among others, statements with respect to the timing and continuance of BIA protection, the restructuring process and potential opportunities for the restructured business. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking information, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", "will", "may", "should", "could", and similar expressions to the extent they relate to Frontline Technologies or its management. The forward looking information is not historical fact, but reflects Frontline Technologies' current expectations regarding future results or events. Forward-looking information is subject to a number of risks, uncertainties and assumptions that may cause the actual results of Frontline Technologies to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Frontline Technologies. Factors that could cause actual results or events to differ materially from current expectations include, among other things, Frontline Technologies' dependence on securities trading activities, the level of consumer demand in Frontline Technologies', credit and market risks, the uncertainty involved in court proceedings; changes to regulations affecting Frontline Technologies' activities; uncertainties relating to the availability and costs of financing needed in the future; the ongoing operation of Frontline Technologies' business and other factors, including without limitation, those listed in Frontline Technologies' MD&A for the three months and nine months ended September 30, 2012 under the heading "Risks and Uncertainties".
Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Frontline Technologies Inc.
Chairman and Chief Executive Officer
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