Debt Settlement

Brampton, Canada: (Nov-27-07) AADCO Automotive Inc. recently stated that it has reached agreements with five creditors to settle aggregate debt of $5,060,050.27 by the issuance of 53,973,870 common shares. Company sources claimed that the debt represents the amount owing effective December 28, 2007, being the same date as AADCO's shareholders meeting at which approval for the settlement will be sought. Under the settlement agreement, the number of shares issued as well as the price per share is calculated on a post-consolidation basis with respect to a 5 to 1 share consolidation AADCO anticipates carrying out. Issued shares will be subject to a 4-month hold period and the TSX Venture Exchange may impose a time-release escrow provision on a portion of the shares. The debt relates to convertible debentures previously issued by AADCO, as well as to a bridge loan and advances owing to a Director. [YAHOO: DEBT SETTLEMENT]

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Published on Nov-28-07