Prestige Telecom files a notice of its intention to submit a proposal pursuant to the Bankrupcty and Insolvency Act and is seeking leave to sell substatially all of its assets

MONTREAL, Nov. 23, 2011 /CNW Telbec/ - Prestige Telecom Inc. ("Prestige" or "the Company") (TSXV: PR) a leader in providing engineering, materials furnishing, installation and support services (commonly referred to as EF&I services), as well as technical and aerial services to the Canadian communications and broadcast industries announces that it has filed today with the Office of the Superintendent of Bankruptcy a notice of intention to submit a proposal to its creditors pursuant to the Bankruptcy and Insolvency Act (Canada), appointing Raymond Chabot Inc. as trustee pursuant thereto. Prestige has taken this action in connection with the receipt from its main lender and secured creditor, Canadian Imperial Bank of Commerce ("CIBC"), of a prior notice of its intention to enforce its secured rights over all or substantially all of the Company's assets in accordance with section 244 of the Bankruptcy and Insolvency Act (Canada).

Moreover, Prestige announces that motions served and filed today by Prestige and CIBC will be heard by the Commercial Chamber of the Superior Court of Quebec on November 24, 2011 seeking, respectively, leave to sell substantially all of Prestige's assets to a company controlled by Thornhill Investments Inc. ("Thornhill") and the appointment of Raymond Chabot Inc. to act as receiver under section 243 of the Bankruptcy and Insolvency Act (Canada) notably to receive the proceeds of the sale for distribution to the Company's creditors in accordance with their rank.

The foregoing steps are taken as a result of the continuing deterioration of the Company's precarious liquidity position. The sale of the Company's assets to Thornhill is considered to be the best transaction possible further to a formal strategic review process undertaken in June 2011 and pursuant to which the Company conducted a competitive bidding process overseen by a special committee of the board of directors with the assistance of external financial and legal advisors.

The terms of the sale, including the consideration payable, will be announced upon receiving the approval of the court and executing a formal agreement with Thornhill. This information must remain confidential pending such approval and agreement as its disclosure in the context of a refusal of the court or the inability to secure an agreement would be prejudicial to the Company's interests and ability to negotiate an alternative transaction.

Prestige also announces the resignations of Robert Blain and Pierre Yves Méthot as directors of the Company as well as the resignation of Pierre Yves Méthot as Chairman and Chief Executive Officer.

About Prestige Telecom Inc.

Prestige Telecom is a leading provider of network engineering, materials furnishing, installation and support services (commonly referred to as EF&I services) required to construct, operate and maintain wireline, wireless and cable television networks. Prestige assists telecommunications original equipment manufacturers and service providers to engineer, install and upgrade their infrastructures to support enhanced voice, high-speed data and video services. Prestige Telecom also provides technical and aerial services to the Canadian communications and broadcast industries, including tower supply, engineering, site construction, and infrastructure and equipment maintenance.

In Canada, Prestige has over 1,000 professional and technical personnel operating from nineteen (19) service locations in nine (9) provinces. Prestige's head office is located in Baie-d'Urfé (Montréal), Québec.

Forward-Looking Statements

This press release contains certain forward-looking statements with respect to the Company. Such forward-looking statements are dependent upon a certain number of factors and are subject to risks and uncertainties. Management does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information or future events, except when required by the regulatory authorities.

The TSX Venture Exchange has not reviewed the contents of this press release and accepts no responsibility for the adequacy or the accuracy thereof.


For further information:

Prestige Telecom Inc.  
Maryanne Golden 
Director - Corporate Affairs 
Tel.: (514) 457-4488, ext. 273

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