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MONTREAL, Feb. 11 /CNW Telbec/ - Madacy Entertainment Income Fund (TSX:
MEG.UN) (the "Fund" or "Madacy") announces that at a special meeting held
earlier today, unitholders approved the sale of Madacy Entertainment LP, the
Madacy operating entity, and the redemption of the units of the Fund for $0.39
per unit with the proceeds of the sale.
Receiving unitholder approval satisfies one of the conditions for the
sale of Madacy business and the winding-up of the Fund. At the present time,
Madacy's management is in negotiations with its bank for the approval of the
foregoing transaction and the provision of continued working capital financing
after the closing of the transaction. Such discussions include the provision,
by the purchasers, of security in favour of Madacy's bank similar to the
guarantee provided by the holding company of the chief executive officer in
the Fall of 2008 in order to provide Madacy with additional working capital.
Madacy expects to be able to conclude the foregoing negotiations in the
near future and to be able to satisfy the remaining conditions of closing and
complete the privatization transaction shortly thereafter.
About Madacy Entertainment Income Fund
Madacy operates in the business of recorded music and home video products
with a primary focus on the development and marketing of budget and mid-priced
recorded music products. Madacy is also involved in the worldwide licensing of
its proprietary recordings. According to industry data, Madacy is the largest
independent budget and mid-priced music label in North America by number of
units sold. Madacy also develops and markets budget and mid-priced home video
Additional information relating to Madacy Entertainment Income Fund is
available at www.sedar.com and on Madacy's website at www.madacy.com.
For further information:
For further information: Hillel Frankel, President, Madacy Entertainment
Income Fund, (514) 341-5600 x333