SHERBROOKE, QC, Sept. 10 /CNW Telbec/ - Shermag Inc. (TSX:SMG) and its
subsidiaries (the "Company") today announced that its plan of arrangement (the
"Plan") has been duly accepted by its creditors during a meeting of creditors
held today in conformity with the Companies' Creditors Arrangement Act (the
The Plan provides that, pursuant to a transaction to take place no later
than October 16, 2009, approved by the Québec Superior Court on August 12,
2009, le Groupe Bermex Inc., will, in furtherance to the approval of the Plan
by the creditors and by the Court, invest the settlement amount of $1,250,000.
The Plan is available on the Monitor's Website (www.rsmrichter.com).
Therefore, on September 15, 2009, the Company will present a motion to
sanction the Plan before the Québec Superior Court. This is a very important
step for the reorganization of the Company.
Shermag has been operating under the protection of the CCAA since May 5,
2008 and obtained from the Québec Superior Court an extension of the stay of
proceedings against Shermag and its subsidiaries until October 16, 2009. RSM
Richter Inc. is the Court appointed Monitor for the CCAA proceedings.
Shermag Inc., headquartered in Sherbrooke, Québec, designs, produces,
markets and distributes high-quality residential furniture. Shermag presently
has 219 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