SHERBROOKE, QC, April 3 /CNW Telbec/ - Shermag Inc. (TSX: SMG) today
announced that it has obtained an order from the Québec Superior Court
extending to July 13, 2009 the period of the Court ordered stay of proceedings
against Shermag and its subsidiaries, Jaymar Furniture Corp., Scierie
Montauban Inc., Mégabois (1989) Inc., Shermag Corporation and Jaymar Sales
Corporation (together referred to as the "Company") under the Companies'
Creditors Arrangement Act.
The purpose of the stay of proceedings is to provide the Company with an
opportunity to develop and file a plan of arrangement to propose to its
creditors and to hold a creditors' meeting. The Company intends to file its
plan of arrangement shortly.
Shermag Inc., headquartered in Sherbrooke, Québec, designs, produces,
markets and distributes high-quality residential furniture. The Company
presently has 229 active employees and is a manufacturer and importer with its
manufacturing operations and global sourcing division.
This news release contains forward-looking statements about the Company's
operations, objectives, strategies, financial situation and performance. These
statements are made based on assumptions and management's best estimates with
regard to future events. However, the business of the Company is subject to
risks and uncertainties that could cause actual results to differ from
expected results. Important factors that could cause such differences are
changes in pricing pressure being exerted by competitors, particularly
Asian-based companies, or significant movement in the Canadian/US dollar
exchange rate. This is not an exhaustive list. A broader evaluation of risk
factors that could affect future performance can be found in the Company's
Annual MD&A and Annual Information Form, filed with Canadian securities
regulatory authorities. Given these risks and uncertainties, investors should
not place undue reliance on forward-looking statements as a prediction of
actual results. The Company disclaims any intention or obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
For further information:
For further information: Shermag Inc., (819) 566-1515