MONTREAL, Nov. 23, 2011 /CNW Telbec/ - Prestige Telecom Inc. ("Prestige"
or "the Company") (TSXV: PR) a leader in providing engineering,
materials furnishing, installation and support services (commonly
referred to as EF&I services), as well as technical and aerial services
to the Canadian communications and broadcast industries announces that
it has filed today with the Office of the Superintendent of Bankruptcy
a notice of intention to submit a proposal to its creditors pursuant to
the Bankruptcy and Insolvency Act (Canada), appointing Raymond Chabot Inc. as trustee pursuant thereto.
Prestige has taken this action in connection with the receipt from its
main lender and secured creditor, Canadian Imperial Bank of Commerce
("CIBC"), of a prior notice of its intention to enforce its secured
rights over all or substantially all of the Company's assets in
accordance with section 244 of the Bankruptcy and Insolvency Act (Canada).
Moreover, Prestige announces that motions served and filed today by
Prestige and CIBC will be heard by the Commercial Chamber of the
Superior Court of Quebec on November 24, 2011 seeking, respectively,
leave to sell substantially all of Prestige's assets to a company
controlled by Thornhill Investments Inc. ("Thornhill") and the
appointment of Raymond Chabot Inc. to act as receiver under section 243
of the Bankruptcy and Insolvency Act (Canada) notably to receive the proceeds of the sale for distribution
to the Company's creditors in accordance with their rank.
The foregoing steps are taken as a result of the continuing
deterioration of the Company's precarious liquidity position. The sale
of the Company's assets to Thornhill is considered to be the best
transaction possible further to a formal strategic review process
undertaken in June 2011 and pursuant to which the Company conducted a
competitive bidding process overseen by a special committee of the
board of directors with the assistance of external financial and legal
The terms of the sale, including the consideration payable, will be
announced upon receiving the approval of the court and executing a
formal agreement with Thornhill. This information must remain
confidential pending such approval and agreement as its disclosure in
the context of a refusal of the court or the inability to secure an
agreement would be prejudicial to the Company's interests and ability
to negotiate an alternative transaction.
Prestige also announces the resignations of Robert Blain and Pierre Yves
Méthot as directors of the Company as well as the resignation of Pierre
Yves Méthot as Chairman and Chief Executive Officer.
About Prestige Telecom Inc.
Prestige Telecom is a leading provider of network engineering, materials
furnishing, installation and support services (commonly referred to as
EF&I services) required to construct, operate and maintain wireline,
wireless and cable television networks. Prestige assists
telecommunications original equipment manufacturers and service
providers to engineer, install and upgrade their infrastructures to
support enhanced voice, high-speed data and video services. Prestige
Telecom also provides technical and aerial services to the Canadian
communications and broadcast industries, including tower supply,
engineering, site construction, and infrastructure and equipment
In Canada, Prestige has over 1,000 professional and technical personnel
operating from nineteen (19) service locations in nine (9) provinces.
Prestige's head office is located in Baie-d'Urfé (Montréal), Québec.
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. Management 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
The TSX Venture Exchange has not reviewed the contents of this press
release and accepts no responsibility for the adequacy or the accuracy
SOURCE PRESTIGE TELECOM INC.
For further information:
Prestige Telecom Inc.
Director - Corporate Affairs
Tel.: (514) 457-4488, ext. 273