L.M. Sauvé asks business partners involved in the St. James United Church repair and renovation project to take share of cost overruns

    Fairly sharing the extra costs incurred would help the company to protect
    its creditors' interests

    MONTREAL, April 20 /CNW Telbec/ - Montreal company L.M. Sauvé 1964 Ltd
("L.M. Sauvé") would like to inform its creditors about the protection of
their interests and about its own financial situation. During a meeting
planned for May 17 and 18, L.M. Sauvé will make a certified proposal aimed at
meeting its legal and financial obligations as far as possible.
    "We want to ensure that each of our creditors is satisfied with our
proposal. We thoroughly understand the concerns that they may have at this
time, just as we believe they understand the difficult circumstances which
L.M. Sauvé is currently facing," said Mr. Paul Sauvé, the company's President.
    L.M. Sauvé's recent financial troubles result directly from the project
to repair and renovate the St. James United Church on St. Catherine Street in
Montreal. In addition to L.M. Sauvé, the partners involved in this project are
the Quebec Government's ministère des Affaires Municipales (Ministry of
Municipal Affairs) and the ministère de la Culture (Ministry of Culture) and
the City of Montreal. The work related to this project, estimated at $6.1
million, finally cost a total of $8.3 million, or $2.2 million more than
initially anticipated. These excess costs were mainly caused by losses of
expected rental revenue, an increase in banking costs and other unpredictable
problems related to the repair and renovation work.
    To date, this additional $2.2 million has been entirely absorbed by
L.M. Sauvé. "The fact that we alone have assumed these major cost overruns has
plunged our company into a precarious financial situation obviously to our
detriment, but also to the detriment of our creditors. A fair division of
these excess costs with our three partners would allow us to rebuild our
financial situation, which would also benefit our creditors. I am convinced
that these creditors will join with me to call on the other project
participants, the City of Montreal and the Ministry of Municipal Affairs and
the Ministry of Culture, to share these costs with L.M. Sauvé, because this is
the right and fair decision," concluded Mr. Sauvé.

For further information:

For further information: Frédéric Bérard, HKDP Communication and Public
Affairs, (514) 395-0375 ex. 230

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