Avatar Announces Appointment of Receiver, Resignation of Directors
Avatar Energy Ltd. (AVG.V) announced that it has received a Notice of Intention to Enforce Security from its bank lender and has therefore consented to the appointment by the lender of Ernst & Young Inc. as the receiver and manager of the corporation's property.
"As a result of the current financial position of the corporation and current economic circumstances, and following a thorough review of strategic alternatives available to the corporation, the corporation has determined that it is in the best interests of the corporation and its stakeholders to approve the receivership," Avatar said in a statement.
In connection with the receivership order, the directors of the corporation have resigned from their positions. The TSX Venture Exchange has been notified of these developments and it is expected that the corporation's shares will be suspended or delisted from trading.
AVG shares last traded at $0.015.