MONTREAL, March 7, 2012 /PRNewswire/ - Prestige Telecom Inc. ("Prestige" or "the Company") (TSXV: PR) announces that at the meeting of its creditors which took place on March 6, 2012, the statutory majority of creditors approved the proposal submitted by Prestige pursuant to the Bankruptcy and Insolvency Act ("BIA"), in a proportion of 71% in numbers and 81% in value of the creditors who have filed a proof of claim and voted on the proposal.
Prestige had submitted a proposal to its creditors on February 15, 2012 under BIA. The proposal involves the acceptance of an offer from 7922825 Canada Inc. ("Netricom"), the affiliate of Thornhill Investments Inc. that purchased the Company's assets, which would valorize the Company's tax attributes. The offer contemplates Netricom becoming the Company's sole shareholder in return of a cash consideration equivalent to $400,000, less the professional fees incurred in order to complete the transaction, subject to a minimum cash consideration of $100,000.
Pursuant to the proposal, Prestige's share capital shall be reorganized in such a manner as to allow Netricom to be the sole shareholder of Prestige. Moreover, in full and final satisfaction of their claims, creditors will be given the opportunity to share in a limited cash pool comprised of cash on hand and proceeds from the Netricom transaction.
Following the approval of the proposal by its creditors, Prestige will now seek a final order from the Court approving the proposal and authorizing the reorganization of Prestige's share capital as stated above pursuant to section 191 of the Canada Business Corporations Act at the latest by April 15, 2012. Prestige intends to make an application to the securities regulatory authorities to revoke its reporting issuer status following the foregoing transactions.
This press release contains certain forward-looking statements with respect to the Company. Such forward-looking statements are dependent upon a certain number of factors and are subject to risks and uncertainties. Prestige does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information or future events, except when required by the regulatory authorities.
The TSX Venture Exchange has not reviewed the contents of this press release and accepts no responsibility for the adequacy or the accuracy thereof.
SOURCE PRESTIGE TELECOM INC.