MONTREAL, Sept. 4, 2012 /CNW Telbec/ - The Ad Hoc Committee of Holders of 6.25% Convertible Unsecured
Subordinated Debentures (the "Committee") announced that, on August 31, 2012, the Superior Court of Quebec
granted, with costs, a motion brought by the Committee and summarily
rejected an attempt by Yellow Media Inc. (the "Company") to tie the hands of its creditors in a potential "fast-track"
insolvency proceeding. The Committee had vigorously contested the
amended Debtholders' Arrangement Resolution published by the Company on
August 28, 2012, which, if approved, would have had the effect of
subverting the legal process by deeming all Debtholders to have
consented to a pre-packaged CCAA procedure. The Committee is pleased that the Court ruled that the
Company's amendment was a violation of the conditions for amendment
under the provisions of the Quebec Code of Civil Procedure, was neither
necessary nor useful and that it shall not be submitted to the vote of
any of the Debtholders in the proposed CBCA arrangement.
On September 4, 2012, the Company unilaterally amended its plan of
arrangement to marginally increase the recovery to Convertible
Debentureholders. The Committee firmly believes that the amendment is
grossly inadequate and does not constitute a meaningful or bona fide attempt to satisfy the legitimate concerns, expectations and rights of
the Convertible Debentureholders.
The Committee's counsel, Mark E. Meland of the law firm Fishman Flanz
Meland Paquin LLP, stated that: "The Committee is very disappointed
that the Company has not yet engaged in a constructive process to seek
to obtain the support of its stakeholders but rather has unilaterally
put forward a plan of arrangement that is neither fair nor reasonable."
The members of the Committee, which represents numerous retail and
institutional holders of the Convertible Debentures, remain resolutely
against the proposed plan of arrangement, as amended. 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 strongly urges the Company to withdraw the
proposed plan of arrangement, as amended, which it believes is
manifestly unfair to Convertible Debentureholders, and to forthwith
engage with all stakeholders in a fair and transparent consultative
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
For further information:
SOURCE: Ad Hoc Committee of Holders of 6.25% Convertible Unsecured Subordinated Debentures
For further information regarding this press release or to participate in the Committee, please contact Mark E. Meland, 514-932-4100 ext. 213 (firstname.lastname@example.org) or Jason Dolman, 514-932-4100 ext. 272 (email@example.com).