All in West! Capital Corporation Announces Notice of Default on Repayment of Principal of Series B and Series C Debentures

    




 WINNIPEG, Sept. 5, 2012 /CNW/ - All in West! Capital Corporation (the "Corporation")  announced today that it has delivered formal written  notice to CIBC Mellon Trust Company, the indenture trustee for its  Series B convertible debentures (the "Series B Debentures") which mature on September 28, 2012, and for its Series C convertible  debentures (the "Series C Debentures") which mature on October 1, 2012, that the Corporation will default on  its obligation to repay the principal amount and accrued interest on  the Series B and Series C Debentures on their respective maturity  dates. The Corporation has been in default of its obligations relating  to the Series B Debentures since April 30, 2010, when it ceased making  monthly interest payments.  It has been in default of its obligations  relating to the Series C Debentures since November 30, 2010, when it  ceased making monthly interest payments. 

 In addition to the current and anticipated default of the Corporation  relating to its Series B and Series C Debentures, the Corporation is  also in default of a number of its obligations under various financing  documents.  Such defaults include the following:   





          (i)          the Corporation is in default of its obligation to
                       repay principal plus interest relating to the Series
                       A convertible debentures (the "Series A Debentures")
                       which matured on March 31, 2012.  The Corporation
                       ceased monthly interest payments on April 30, 2010;

                        

          (ii)         the Corporation is in default of its obligation to
                       make principal and interest payments to the
                       mortgagee under its mortgage financing and security
                       documents relating to the Econolodge Inn and Suites
                       in Hinton, Alberta. The outstanding mortgage balance
                       is currently $6,404,820;

                        

          (iii)        as a result of the defaults noted above, the
                       Corporation is in breach of the "cross-default"
                       covenants under its mortgage financing and security
                       documents relating to the Phase I and Phase II Best
                       Western hotels in Grande Cache, Alberta.  The
                       outstanding mortgage balances for such properties
                       are currently $7,775,582 in respect of the Phase I
                       property and $4,637,066 in respect of the Phase II
                       property.






  

 The Corporation is in ongoing discussions with its mortgage lenders  regarding the defaults under its mortgage indebtedness and potential  restructuring of such indebtedness. 

 Earlier this year, the Corporation sold the Days Inn in Hinton, Alberta  to the mortgage lender in consideration for the settlement of the  outstanding mortgage indebtedness. The property was independently  appraised for $3,000,000 and $4,224,888 of debt owed by the Corporation  to the mortgage lender was forgiven. 

 The Corporation is continuing to evaluate alternatives available to it.   The Corporation formed a special committee whose mandate is to evaluate  the Corporation's alternatives specifically as it relates to its  outstanding convertible debentures and to make recommendations to the  Board of Directors. The Corporation has engaged a third party  investment banking advisor to work with the special committee and Board  of Directors. 

 Caution Concerning Forward-Looking Statements 

 This news release of All in West! Capital Corporation (the  "Corporation") contains certain statements that constitute  forward-looking information within the meaning of applicable securities  laws ("forward-looking statements").  All statements other than  statements of historical fact contained herein are forward-looking  statements, including, without limitation, statements regarding the  alternatives relating to its convertible debentures.  Certain risks and  uncertainties regarding the Corporation are more fully discussed in the  Corporation's filings with Canadian provincial securities regulatory  authorities, including its most recent management discussion and  analysis, a copy of which is available on www.sedar.com.  The forward-looking statements contained herein are expressly  qualified in their entirety by this cautionary statement.  The  Corporation does not undertake any obligation to update forward-looking  statements. 

 Neither the TSX Venture Exchange nor its service provider has reviewed  or approved the contents of this press release. 

All in West! Capital Corporation


CONTACT:  Please contact Mr. Cornelius Martens, President and ChiefExecutiveOfficer, or Cornelius William Martens, Investor Relations, Tel: [phone]. 


    

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