Prestige Telecom submits a proposal and accepts an offer valorizing its tax attributes

MONTREAL, Feb. 15, 2012 /CNW Telbec/ - Prestige Telecom Inc. ("Prestige" or "the Company") (TSXV: PR) announces that it has submitted a proposal to its creditors under the Bankruptcy and Insolvency Act (Canada) ("BIA"). The proposal is subject to approval by the statutory majority of Prestige's creditors under the BIA at a meeting scheduled to be held on or about March 14, 2012.

Prestige also announces that it has accepted an offer from 7922825 Canada Inc. ("Netricom"), the affiliate of Thornhill Investments Inc. that purchased the Company's assets, which would valorize the Company's tax attributes. The offer contemplates Prestige becoming the Company's sole shareholder for a cash consideration equivalent to $400,000, less the professional fees incurred in order to complete the transaction, subject to a minimum cash consideration of $100,000.

Pursuant to the proposal, Prestige's share capital will be reorganized in such a manner as to allow Netricom to be the sole shareholder of Prestige. Moreover, in full and final satisfaction of their claims, creditors will be given the opportunity to share in a limited cash pool comprised of cash on hand and proceeds from the Netricom transaction.

Provided it receives the requisite approval from its creditors, Prestige will seek a final order from the Court approving the proposal and authorizing the reorganization of Prestige's share capital as stated above pursuant to section 191 of the Canada Business Corporations Act at the latest by March 30, 2012. Prestige intends to make an application to the securities regulatory authorities to revoke its reporting issuer status following the foregoing transactions.

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. Prestige 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.  
Guy Lever 
Tel.: (514) 457 4488

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