MARKHAM, ON, Jan. 30 /CNW/ - Cygnal Technologies Corporation ("Cygnal")
(TSX: CYN) today announced that it obtained orders (the "January 30 Orders")
from the Ontario Superior Court of Justice (the "Court"). The orders, among
other things: (i) extend to March 21, 2008 the period of the Court-ordered
stay of proceedings against Cygnal and its wholly-owned subsidiaries, Cygnal
Technologies Ltd. ("Cygnal Quebec") and Accord Communications Ltd. ("Accord"
together with Cygnal and Cygnal Quebec, the "Applicants") in the Applicants'
proceedings under the Companies' Creditors Arrangement Act (the "CCAA
Proceedings"); (ii) establish a further process to supplement the existing
court-ordered process by which certain creditors of the Applicants must prove
their claims in the CCAA Proceedings; and (iii) set the date for the
Applicants' creditor meetings to consider and approve the joint plan of
arrangement and reorganization dated January 29, 2008 (the "Plan") of the
Extension to Stay of Proceedings
The January 30 Orders extend the existing stay of proceedings to March
21, 2008. The purpose of the stay of proceedings is to provide the Applicants
with relief designed to stabilize their operations and business relationships
with their customers, suppliers, employees, and creditors and to provide the
Applicants with an opportunity to develop and, hold creditor meetings in
respect of the Plan, and implement it if approved by affected creditors and
On November 23, 2007, the Court made an order establishing a process by
which certain creditors of the Applicants must prove their claims (the "Claims
Procedure Order"). The Claims Procedure Order dealt with claims resulting from
termination of employment and repudiation of contracts prior to November 30,
2007. Since November 30, 2007, the Applicants have repudiated additional
leasing contracts and terminated additional employees. The January 30 Orders
establish a supplementary claims process to deal with claims arising from
those subsequent actions.
The January 30 Orders require the Applicants to call, hold and conduct
creditor meetings of the Affected Creditors of each Class to consider and vote
on the Plan on March 7, 2008. Notice of the meetings, together with a form of
proxy, a copy of the Plan, an information circular, a copy of the January 30
Orders (other than the order that extended the stay), a copy of the Monitor's
Report and other relevant documentation will be sent by the Monitor to each
Affected Creditor. These materials were submitted to the Court in connection
with obtaining the January 30 Orders.
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.