TORONTO, May 29, 2012 /CNW/ - Cinram International Income Fund ("Cinram" or the "Fund") (TSX: CRW.UN), announced today that Cinram Optical Discs SAS, a French subsidiary engaged in DVD replication, has filed for insolvency. The application is scheduled to be heard on May 31, 2012.
The DVD manufacturing operation has been impacted by a steady decline in volumes in recent years.
The insolvency proceedings will not impact Cinram's distribution operations in France nor its operations in other regions.
Cinram International Inc., an indirect, wholly-owned subsidiary of the Fund, is one of the world's largest providers of multimedia products and related logistics services. With facilities in North America and Europe, Cinram International Inc. manufactures and distributes pre-recorded DVDs, Blu-ray Discs, audio CDs, CD-ROMs and digital content for motion picture studios, music labels, publishers and computer software companies around the world. Cinram also provides distribution and logistics services to the telecommunications industry in North America through its wireless subsidiaries. The Cinram group of companies now also incorporates 1K Studios, a digital media firm based in Los Angeles specializing in building enhanced consumer experiences for movies, TV shows, music, books and games. The Fund's units are listed on the Toronto Stock Exchange under the symbol CRW.UN. For more information, visit www.cinram.com.
Certain statements included in this release constitute "forward-looking statements" within the meaning of applicable securities laws. Such forward-looking statements include statements concerning the possible effects of the transactions described herein, and the likelihood of their successful completion. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund, or results of the multimedia duplication/ replication industry, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, among others, the following: the Fund's ability to retain major customers; general economic and business conditions, which will, among other things, impact the demand for the Fund's products and services; multimedia replication industry conditions and capacity; the ability of the Fund to implement its business strategy; the Fund's ability to invest successfully in new technologies and other factors which are described in the Fund's filings with the securities commissions. These risks may affect the achievement of the expected results of the transactions described herein. There can be no assurance that the said transactions will be successfully completed or that, if completed, the expected consequences will result in whole or in part, and the deviations from such expectations may be material.
For further information:
Cinram International Inc.
John H. Bell
Tel: +1 416.332.2902