CoolBrands International Inc. announces resolution of claim of secured creditor of Americana Foods Limited Partnership



    TORONTO, March 6 /CNW/ - CoolBrands International Inc. (TSX: COB)
("CoolBrands" or the "Company") announces that the United States Bankruptcy
Court for the Northern District of Texas has issued a final order ("Order")
approving the settlement of the secured creditor's claim in the Chapter 7
bankruptcy case of Americana Foods Limited Partnership ("Americana"). Prior to
its bankruptcy case, Americana operated an ice cream production facility in
Dallas, Texas. Americana was a joint venture of which CoolBrands indirectly
owned 50.1%.
    In October 2006, after the occurrence of a number of defaults under its
credit facility, Americana was advised by its lenders that they would no
longer lend to Americana and demanded full and immediate payment of all
amounts owing by Americana under the credit facility, which aggregated
approximately U.S.$21,830,000 plus fees and other costs and which was
guaranteed by CoolBrands and its affiliates. In November 2006, the
indebtedness to the lenders was purchased by 2118769 Ontario Inc. ("2118769"),
a company controlled by Michael Serruya, the President and Chief Executive
Officer of CoolBrands. This purchase allowed for the orderly sale of
Americana's assets by the Chapter 7 bankruptcy trustee, and as a result,
minimized the amount required to be paid by the Company under its guarantee.
    The recently issued Order provides for a final payment to 2118769 of
U.S.$6.5 million by the bankruptcy trustee and for the release of all claims
by the trustee and Americana against CoolBrands and its affiliates. This
payment, together with an earlier payment of U.S.$13 million, partially repays
the balance owing to 2118769. CoolBrands will pay approximately U.S.$3.4
million to 2118769 under its guarantee of the entire bank indebtedness,
including accrued interest and legal and bank fees previously paid by 2118769.
    The litigation brought against the Company by the other partner in
Americana is ongoing. The Company continues to vigorously defend itself
against the allegations filed in the complaint.

    Forward Looking Statements

    The information in this document contains certain forward-looking
statements with respect to CoolBrands International Inc., its subsidiaries and
affiliates. These statements are often, but not always made through the use of
words or phrases such as "expect", "should continue", "continue", "believe",
"anticipate", "estimate", "contemplate", "target", "plan", "budget", "may",
"will", "schedule" and "intend" or similar formulations. By their nature,
these forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by management, are
inherently subject to significant, known and unknown, business, economic,
competitive and other risks, uncertainties and other factors affecting
CoolBrands specifically or its industry generally that could cause actual
performance, achievements and financial results to differ materially from
those contemplated by the forward-looking statements. In view of these
uncertainties we caution readers not to place undue reliance on these
forward-looking statements. CoolBrands disclaims any intention or obligation
to update or revise any statements made herein, whether as a result of new
information, future events or otherwise.

    %SEDAR: 00003887E




For further information:

For further information: Carla Aedo, Telephone: (905) 479-8762

Organization Profile

COOLBRANDS INTERNATIONAL INC.

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