TORONTO, July 12, 2012 /CNW/ - Cinram International Income Fund (TSX:
CRW.UN) (together with its subsidiaries, "Cinram" or the "Fund")
announced today that the Ontario Court of Justice has approved the sale
of substantially all of Cinram's assets and businesses in the United
States, Canada, the United Kingdom, France and Germany (the "Sale
Transaction") to newly formed subsidiaries of Najafi Companies. The
Sale Transaction is subject to recognition and approval before the
Court in the United States on July 25, 2012.
Cinram also announced that it has received written support from lenders
representing 100% of the loans outstanding under Cinram's first lien
credit facilities and lenders representing approximately 98% of the
loans outstanding under Cinram's second lien credit facility.
"This is a significant milestone in our progress towards completion of
the Sale Transaction and the strengthening of Cinram's competitive
position," said Steve Brown, CEO of Cinram.
Under the Sale Transaction announced on June 25, 2012, Najafi will
purchase substantially all of the assets used in Cinram's core
businesses for the manufacture of pre-recorded multimedia products and
the provision of related logistics services, digital media solutions
and outsourced vendor management inventory services in North America
and substantially all of the European business.
The Sale Transaction is expected to close in August 2012, subject to
satisfaction of closing conditions, although the transfer of portions
of the business may occur later in the year.
Cinram International Inc., an indirect, wholly-owned subsidiary of the
Fund, is one of the world's largest providers of pre-recorded
multimedia products and related distribution and logistics services.
With facilities in North America and Europe, Cinram International Inc.
manufactures and distributes pre-recorded DVDs, Blu-ray discs, audio
CDs, and CD-ROMs for motion picture studios, music labels, publishers
and computer software companies around the world. The Fund's units are
listed on the Toronto Stock Exchange under the symbol CRW.UN. For more
information, visit our website at www.cinram.com.
Certain statements included in this release constitute "forward-looking
statements" within the meaning of applicable securities laws. Such
forward-looking statements include statements concerning the possible
effects of the transactions described herein, and the likelihood of
their successful completion. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Fund to be
materially different from any future results, performance or
achievements expressed or implied by such forward looking statements.
These risks may affect the achievement of the expected results of the
transactions described herein. The transactions are subject to
conditions, and there can be no assurance that the said transactions
will be successfully completed or that, if completed, the expected
consequences will result in whole or in part, and the deviations from
such expectations may be material.
SOURCE Cinram International Income Fund
For further information:
John H. Bell
The Lavidge Company
(Public relations advisor to Najafi Companies)