Yellow Media - Convertible Debentureholders Oppose Plan of Arrangement Process

MONTREAL, Aug. 15, 2012 /CNW Telbec/ - The Ad Hoc Committee of Holders of 6.25% Convertible Unsecured Subordinated Debentures (the "Committee") announced that it has filed with the Superior Court of Quebec a motion for the revocation of the Interim Order rendered on July 23, 2012 in connection with the proposed CBCA plan of arrangement of Yellow Media Inc. (the "Company") and for other relief (the "Motion"). The Committee represents numerous retail and institutional holders of the Convertible Debentures.

In the Motion, the Committee vigorously challenges the process by which the plan of arrangement was conceived and proposed, the inappropriate and inequitable treatment of Convertible Debentureholders thereunder and the fact that they have not been placed in a separate voting class.

The members of the Committee have announced today the manner in which they intend to vote on the proposed plan of arrangement.  They intend to: (i) exercise the Opt-Out Election entitling them to vote at the Debtholders' Meeting and (ii) register their votes against the proposed plan of arrangement.

The Committee once again urges the Company to withdraw the proposed plan of arrangement, which it believes is manifestly unfair to Convertible Debentureholders, and to forthwith engage with all stakeholders in a fair and transparent consultative process.

By this press release, the Committee is not providing investment advice to any third parties and it suggests that Convertible Debentureholders should contact their own investment advisors to seek independent advice as to how they should register their votes. This press release is not a request for a proxy or to execute or not execute or revoke a proxy. This press release is not intended to result in the procurement, withholding or revocation of a proxy or otherwise intended to be a solicitation of proxies from any securityholder and no proxies are expected following this announcement.

SOURCE: Ad Hoc Committee