Mr. Ken Fitzgerald reports
KNIGHTHAWK INC. ANNOUNCES 2015 FIRST QUARTER OPERATING
RESULTS
In July, 2013, KnightHawk Inc. announced that it had ceased operating its rail and
rail-related operations. Toward that end, KnightHawk's indirectly wholly owned subsidiary company,
Kelowna Pacific Railway Ltd., made an assignment into bankruptcy. Boale,
Wood & Company Ltd. was named trustee under the filing. Further information about the filing is
available at Boale's website.
As a result of the above decision, KPR, and KnightHawk's remaining subsidiaries, discontinued
operations and commenced the process toward an orderly disposition of its rail and rail-related assets.
Net proceeds were used in part to repay any secured debt which was outstanding. The assets and
liabilities of discontinued rail and rail-related operations, and rail and rail-related operating results, have
been reclassified in the consolidated financial statements as discontinued rail-related operations.
Earnings (loss) from discontinued rail-related operations for the three months ended Jan. 31, 2015,
were ($48,000) compared with ($25,000) for the same period in 2014. The earnings (loss) from
discontinued rail-related operations for the three months ended Jan. 31, 2015, included gains (losses)
on the sale of assets of discontinued rail-related operations of $1,000 compared with $5,000 for the same
period in 2014.
Earnings (loss) from discontinued air operations for the three months ended Jan. 31, 2015,
were ($106,000) compared with ($53,000) for the same period in 2014. The earnings (loss) from
discontinued air operations for the three months ended Jan. 31, 2015, and 2014, were due to
unrealized foreign exchange gains (losses) on liabilities denominated in U.S. dollars.
By mid-2013, historical weakness in the forest products sector proved too challenging for the company
as a whole, ultimately resulting in the discontinuation of rail and rail-related operations and the above
filing in July. Since the filing date, the trustee has had, and does have going forward, full authority
and responsibility over KPR and its ultimate disposition, and timing of same, in whatever form. The board of directors and management of KnightHawk continue to oversee and direct the affairs of
KnightHawk and its remaining subsidiaries, with a view to safeguarding the company's assets and
maximizing shareholder value over the long term.
KnightHawk's complete first quarter 2015 report is available at SEDAR.
We seek Safe Harbor.
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