TORONTO, Aug. 20 /CNW/ - Specialty Foods Group Income Fund (the "Fund")
(NEX: HAM. UN.H.) announced today that it is unlikely that it will be able to
continue to function as a reporting issuer in good standing under applicable
Canadian securities legislation.
The Fund relies on advances from Specialty Foods Group, Inc. ("SFG" or
the "Company") to fund its expenses and has no other sources of funding
available to it. The Fund previously announced in its management information
circular of April 20, 2009 and in its press release of May 22, 2009 that the
Company was considering ceasing to advance further funds to the Fund and that,
as a result, the Fund would likely be unable to maintain itself as a reporting
issuer in good standing.
As a result of the desire to conserve cash, the Company and its
subsidiaries have advised the Fund that they have determined that they will
cease advancing further funds to the Fund effective immediately. The Trustee
of the Fund does not believe it is likely that the Fund will be able to access
other funding necessary for the Fund to continue to function as a reporting
issuer in good standing under applicable Canadian securities legislation or
that the Fund will be able to pay its debts as they come due including listing
and registrar and transfer agency fees.
Accordingly, the Fund will likely be unable to maintain itself as a
reporting issuer in good standing with the result likely to be that Canadian
securities regulators will issue an order or orders cease-trading the Units of
the Fund. If such an order is issued, it will no longer be possible to trade
units of the Fund until the Fund is brought back into good standing. Ownership
of the Units will otherwise not be affected.
In light of the lack of funding available to the Fund, the sole director
of the Trustee of the Fund has advised the Fund that she will be resigning and
there are no current plans to appoint a replacement director.
SFG and its subsidiaries will continue their operations in the normal
course and are unaffected by the status of the Fund including its financial
situation. SFG is a leading independent U.S. producer and marketer of premium
branded and private-label processed meat products. SFG sells a wide variety of
products such as franks, hams, bacon, luncheon meats, and delicatessen meats.
These products are sold to a diverse customer base in the retail (e.g.,
supermarkets) and foodservice (e.g., restaurants) sectors. SFG sells products
under a number of leading national and regional brands, such as Nathan's,
Field, Fischer's, Mickelberry's and Scott Petersen as well as on a
Specialty Foods Group Income Fund is an open-ended, limited purpose trust
established under the laws of the Province of Ontario.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Steve Wright, Chief Financial Officer,
Specialty Foods Group, Inc., Tel: (757) 952-1200, Email:
email@example.com, Website: www.sfgtrust.com