Clearford Water Systems Inc.

Clearford Water Systems Inc. is proceeding under a Division I proposal under the Bankruptcy and Insolvency Act in the Ontario Superior Court of Justice, court file 33-2825753, commenced June 29, 2022. An unaudited consolidated balance sheet prepared by the Company's representatives as at September 30, 2021 shows total assets of $19,857,000 against total liabilities of $80,041,000 and a shareholders' deficiency of $(60,184,000), with long-term debt of $55,895,000 and a convertible debenture of $8,776,000 representing advances from the Sponsors directly and through subsidiaries, and accrued interest of approximately $9.8 million. Secured claims held by Sponsors and related parties stood at approximately $7,400,000 to Morebath Limited, $5,350,000 to Sustainable Water Projects Inc. and $3,700,000 to Lexus Continental Ltd. as of the April 28, 2022 filing date. Trade and other creditors are estimated by the Company to hold Affected Claims of approximately $296,000; intercompany claims from three subsidiaries total $25,240,000 and SW Everett Inc. is owed $4,477,000. Enterprise Fleet Management Canada, Inc.'s registered security interest is treated as an Unaffected Claim.