Tuesday, April 21, 2009

Railpower wins extended protection from creditors

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Brossard, Que.-based Railpower Technologies Corp. announced Tuesday that the Quebec Superior Court has issued an order giving the company an additional period of protection under the Companies' Creditors Arrangement Act Canada (CCAA). The purpose is "to provide Railpower with an opportunity to develop a comprehensive business restructuring plan for consideration by its creditors" and the court.

An initial order was granted on Feb. 4, was extended on March 4 and April 7,  and has now been further extended until May 20. While Railpower is under CCAA protection, creditors and other third parties are stayed from taking steps against the company.

Railpower develops and markets environmentally friendly locomotives and power plants for the transportation and related industries.