Mecachrome's recapitalization plan approved by court



    TOURS, France, and MONTREAL, Sept. 1 /CNW Telbec/ - Mecachrome
International Inc. ("Mecachrome" or the "Company") announced today that it
received, at a hearing held earlier today, a sanction order from the Superior
Court of the Province of Quebec approving the Company's proposed debt and
capital restructuring plan (the "Plan") pursuant to the Companies' Creditors
Arrangement Act and the Canada Business Corporations Act. The Court found that
the Plan is fair, reasonable, and in the best interests of Mecachrome and its
creditors. At the creditors' meeting held August 26, 2009, 92.7% of all voting
creditors, and 99.5% of the total amount voted by all creditors, voted to
accept the Plan.
    "We are entering the final stretch of our recapitalization process," said
Julio De Sousa, President and Chief Executive Officer of Mecachrome. "Once the
Plan is implemented, the Company will emerge financially stronger, poised to
pursue growth opportunities".
    The Plan remains subject to certain conditions set forth in the Company's
press release dated August 5, 2009, including the adoption by the French Court
of a safeguard plan (plan de sauvegarde) for the Company's French
subsidiaries. If these conditions are not satisfied there can be no assurances
that they will be waived or that alternate financing will be available on
acceptable terms. The Company will advise as to the progress of its French
subsidiaries under the safeguard procedure (procédure de sauvegarde) in France
in due course. The Company intends to publicly announce the effective date of
the Plan at least three days in advance. The Plan provides that the Company's
existing shares (multiple voting shares and subordinated voting shares) will
be cancelled for no consideration.

    
    About Mecachrome International Inc.
    -----------------------------------
    
    Mecachrome is a leader in the design, engineering, manufacture and
assembly of complex precision-engineered components for aircraft and
automotive applications, including aerostructural and aircraft engine
components, high-end automobile engine components and motor racing engines.
Since 1937, Mecachrome has established a significant presence and global
reputation in certain high-precision sectors of the aerospace, automotive and
industrial equipment industries, providing services primarily to original
equipment manufacturers.

    
    Forward-looking statements
    --------------------------
    
    All statements, other than statements of historical facts, included in
this news release are forward-looking statements or contain forward-looking
information (within the meaning of the Québec Securities Act and the Ontario
Securities Act). Although we believe that the expectations reflected in these
forward-looking statements and forward-looking information are reasonable,
these statements involve risks and uncertainties and are not guarantees of
future performance.
    We can give no assurance that these estimates and expectations will prove
to have been correct, and actual outcomes and results may differ materially
from what is expressed, implied or projected in such forward-looking
statements and forward-looking information. There are a number of important
risks and uncertainties that could, and often do, cause our actual results to
differ materially from those indicated or implied by forward-looking
statements and forward-looking information, including the risks and
uncertainties discussed in Mecachrome's Annual Information Form for the year
ended December 31, 2007. Given the uncertainty of forward-looking statements
and forward-looking information, investors are cautioned not to place undue
reliance on these statements and information. The forward-looking statements
and forward-looking information speak only as of the date made, and Mecachrome
expressly disclaims any intention or obligation to update or revise any
forward-looking statements or forward-looking information, whether as a result
of new information, future events or otherwise, except as may be required by
applicable law.
    Mecachrome is currently subject to Court protection under the Companies'
Creditors Arrangement Act in Canada and under similar protection from the
Courts for its French subsidiaries under the safeguard procedure (procédure de
sauvegarde) in France. Mecachrome also initiated ancillary proceedings before
the United States Bankruptcy Court for the Central District of California to
obtain the enforcement and recognition of the Canadian proceedings. The United
States Bankruptcy Court for the Central District of California granted
Mecachrome's Petition for recognition of foreign proceedings on August 19,
2009. The documentation related the Canadian, French and U.S. court filings is
available on Ernst & Young Inc.'s web site at:
http://documentcentre.eycan.com/Pages/Main.aspx?SID=91.




For further information:

For further information: Mr. Jocelyn Côté, (514) 373-1206

Organization Profile

MECACHROME INTERNATIONAL INC.

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