TORONTO, Aug. 1, 2012 /PRNewswire/ - McMillan LLP, counsel for and on behalf of the Agent to the Lenders to Yellow Media Inc. (the "Company"), announced today that it has delivered a letter to the Company advising that the Lenders do not support the Canada Business Corporations Act plan of arrangement (the "Proposed CBCA Plan") proposed by the Company on July 23, 2012.
The Lenders do not believe that the Proposed CBCA Plan is in their best interests or in the best interests of the stakeholders of the Company generally. The Company put forward the Proposed CBCA Plan without notice to or prior consultation with the Lenders or most of its other stakeholders. The Lenders have invited the Company to withdraw the Proposed CBCA Plan forthwith and to engage in a more open and transparent consultation process with its stakeholders to see if an acceptable plan can be achieved.
In the meantime, the Lenders intend to bring a motion on August 6, 2012 to protect the Lenders' legal rights in the reorganization proceeding initiated by the Company under the CBCA.
Pursuant to the Second Amended and Restated Credit Agreement dated September 28, 2011, the Lenders are owed a principal amount of (CDN)$369,000,000 by the Company.
SOURCE McMillan LLP