HENDERSON, Nev., Jan. 7 /PRNewswire-FirstCall/ -- Consolidation Services, Inc. ("CNSV"), (OTC Bulletin Board: CNSV), announced today that the Shareholder Record Date for determining which shareholders receive one share of "Newco" for each share of CNSV will be January 31, 2010 instead of January 1, 2010 as previously announced. January 1, 2010, will continue to be the effective date for dividing the Company's assets and liabilities into two different legal entities, CNSV and a corporation ("Newco") owned by CNSV, as the first step in spinning out Newco to each shareholder of record in CNSV. Each CNSV shareholder (15,257,220 shares currently outstanding) on January 31, 2010 (the "Shareholder Record Date") is expected to receive, at some later date, one share of Newco for each share of CNSV owned on the Shareholder Record Date. Although the separation of assets and liabilities is considered effective as of January 1, 2010 (the "Transaction Date"); completion of the spin out transaction to the CNSV Shareholders as of the Shareholder Record Date is subject to, and conditioned on, management of CNSV working through a number of complex regulatory, accounting, tax and legal issues with the assistance of appropriate professionals.
As of January 1, 2010, CNSV is primarily an oil and gas company with a residual coal royalty receivable on coal assets that were owned by CNSV as of the Transaction Date. Newco will be primarily a coal company with a residual oil and gas royalty receivable on all oil and gas assets that were owned by CNSV as of the Transaction Date.
Dr. Thomas, CEO anticipates that the division of assets will benefit all CNSV shareholders, past and future, as management anticipates that accumulation of additional oil and gas potential reserves and future development of these potential reserves will be easier under the new structure. CNSV and Newco will be able to make different and independent financing and staffing decisions which maximize the development of their respective assets.