CALGARY, ALBERTA, Jan. 2, 2001—BOVAR has completed the transfer of the Swan Hills Treatment Centre to the Province of Alberta effective December 31, 2000.
The consequences on the company's financial statements at December 31, 2000 will be as follows:
* The Treatment Centre's capital assets will be written off, resulting in a charge in the income statement of approximately $35.1 million.
* The unamortized amount of deferred revenue that arose upon the acquisition of the 40% interest in the Treatment Centre will be recognized as revenue in the income statement in the amount of approximately $47.8 million.
* Accruals for various costs related to ceasing operations and return of the facility to the government, including employee severance, will be made.
As a result of this transition, John Kuziak, the President and Chief Executive Officer has left the Corporation.
Franklin T. Bailey has been appointed as President and Chief Executive Officer, effective January 1, 2001. Mr. Bailey has been with BOVAR since 1993, most recently as Executive Vice President.
BOVAR continues to operate its air and water quality management and chemical demilitarization businesses.
BOVAR Inc., listed on The Toronto Stock Exchange under the symbol BVR.A, is an international provider of environmental and waste management services.
For more information, visit www.bovar.com.
