MARKHAM, ON, March 17 /CNW/ - Cygnal Technologies Corporation ("Cygnal")
(TSX: CYN) today announced that it applied for and was granted an order (the
"Order") of the Ontario Superior Court of Justice (the "Court") in Cygnal's
proceedings pursuant to the Companies' Creditors Arrangement Act (the "CCAA").
The Order approves and sanctions the joint plan of arrangement and
reorganization dated January 29, 2008 (as amended by a technical amendment to
the plan to provide, in effect, that actions to be taken under the plan by a
subsidiary of Laurus Master Fund, Ltd. may instead be taken by another entity
designated by Laurus Master Fund, Ltd.) (the "Amended Plan") of Cygnal, Cygnal
Technologies Ltd. and Accord Communications Ltd. (collectively, the
"Applicants") and provides for its implementation. Assuming all pre-conditions
to the Amended Plan implementation have been met, the Amended Plan is to take
effect on the first moment on the date upon which the certificate of amendment
is issued under the Ontario Business Corporations Act in respect of the
articles of reorganization of Cygnal to be filed by Cygnal in accordance with
the Amended Plan.
It is currently anticipated that the Amended Plan will be implemented and
become effective on April 1, 2008.
Today's Order follows the approval of the joint plan of arrangement and
reorganization dated January 29, 2008 by the Applicants' affected creditors
(the "Creditors") on March 7, 2008.
The Amended Plan provides that the Creditors with proven claims will
receive cash and, if applicable, promissory notes in compromise and settlement
of their claims and provides for the reorganization of the capital of Cygnal
in accordance with the provisions of articles of reorganization that are a
schedule to the Amended Plan. On the plan implementation date, pursuant to the
terms of the Amended Plan and the articles of reorganization of Cygnal, all of
the issued and outstanding shares of Cygnal will be converted into redeemable
shares, which will be automatically redeemed and cancelled, and rights
associated with outstanding options and warrants will be extinguished without,
in effect, payment of any consideration. Cygnal's directors have passed a
resolution authorizing the delisting of Cygnal's common shares from the TSX,
which is expected to occur on or about the implementation date of the Amended
Plan. Upon implementation of the Amended Plan, a new class of common shares
will be issued to a newly created affiliate of Laurus Master Fund, Ltd. and
this entity will become the sole shareholder of Cygnal.
Today's Order also provides that the stay of proceedings against the
Applicants and their property has been extended from March 21, 2008 to the
earlier of the implementation date of the Amended Plan and April 15, 2008.
Cygnal Technologies is in the business of providing network
communications solutions including the design, integration, installation,
maintenance and management of wired and wireless solutions and networks.
Cygnal Technologies has expertise in voice, video and data solutions over
traditional and next generation converged technologies. Cygnal Technologies
Corporation is headquartered in Markham, Ontario.
This press release contains forward-looking statements. Forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Cygnal
Technologies to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking statements,
including the risks, uncertainties and other factors discussed in this press
release, risks associated with Cygnal Technologies' restructuring process and
the risks, uncertainties and other factors discussed in Cygnal Technologies'
filings with securities regulatory authorities. Actual results and
developments are likely to differ, and may differ materially, from those
expressed or implied by the forward-looking statements contained in this press
release. Cygnal Technologies specifically disclaims any obligation to update
these forward-looking statements. These forward-looking statements should not
be relied upon as representing Cygnal Technologies' views as of any date
subsequent to the date of this press release.
For further information:
For further information: Jeff Codispodi, Investor Relations, The Equicom
Group Inc., (416) 815-0700 ext. 261, firstname.lastname@example.org