MAAX Corporation and affiliates agree to sale of assets and business to Brookfield

    MONTREAL, June 12 /CNW Telbec/ - MAAX Corporation ("MAAX" or "the
Company") announced today that it has entered into an Asset Purchase Agreement
with Brookfield Bridge Lending Fund Inc. ("Brookfield"), its senior lender,
concerning a transaction (the "Sale Transaction") that will see Brookfield
acquire substantially all of the assets and property of MAAX Corporation and
its affiliates ("MAAX" or the "Company").
    The Sale Transaction preserves the MAAX business and ensures its
continuance as a successful competitor in the marketplace. The Sale
Transaction has the following key elements:

    - Brookfield will purchase substantially all of the assets and property
      of the Company;
    - Brookfield will assume substantially all of the Company's trade
      obligations and the continued employment of substantially all of the
      Company's employees as set out in the Asset Purchase Agreement;
    - Brookfield will continue to fulfill the Company's obligations to its
      customers and suppliers as set out in the Asset Purchase Agreement;
    - The purchase price is the amount owing under the Company's Senior
      Secured Credit Facility, plus the assumption by Brookfield of the
      assumed liabilities; and
    - The Sale Transaction is expected to close within 60 days.

    "This transaction will place the MAAX business on a much stronger
financial footing that will enable it to focus on building upon its
competitive position and positive reputation," said Paul Golden, the Company's
President and CEO. "It preserves the MAAX business and ensures its continuance
as a successful competitor in the marketplace."
    The Sale Transaction will be implemented through a Court-supervised
process. To that end MAAX has applied for and obtained today an Order of the
Superior Court of the Province of Quebec (Commercial Division) to initiate
proceedings under the Companies' Creditors Arrangement Act. These proceedings
are limited to the Company's operations in Canada and do not apply to those in
the United States or Europe. The Sale Transaction hearing has been scheduled
to approve the sale of the assets and the business and a vesting order before
the Superior Court of the Province of Quebec (Commercial Division) and such
matter is presentable on Thursday, June 26, 2008 at 9:15 a.m. in Courtroom
16.12, 1 East, Notre-Dame Street, Montreal, Quebec.
    This process will not affect the Company's day-to-day operations. MAAX
has access to the funding necessary to maintain operations and the business
will continue without disruption during this period. As part of the Initial
CCAA Order, the Court approved an amendment to the Company's existing credit
facilities with Brookfield that provide MAAX with an additional
CDN $30 million of available financing.
    As part of the Sale Transaction, MAAX will continue pay its suppliers for
all goods and services in the ordinary course. Brookfield is assuming the
co-op, rebate, warranty claim and other provisions of its current customer
agreements, and the Company anticipates that these will continue to be
honoured without interruption.
    "Our sales in Canada remain strong," Mr. Golden added. "We have plans to
continue growing our leadership position and market share in the United
States, and we expect that the completion of the Sale Transaction will enable
MAAX to emerge as a stronger company for the long term in North America and

    About MAAX

    MAAX is a leading North American manufacturer of award-winning bathroom
products and spas for the residential housing market. The corporation is
committed to offering its customers an enjoyable experience: distinctive,
stylish, and innovative products and the best customer service practices in
the industry.
    The company currently employs more than 2,000 people in 15 plants and
independent distribution centers throughout North America and Europe. Visit us

For further information:

For further information: Stéphanie Jarrold, Corporate Director,
Communications, MAAX Corporation, Cell: (514) 705-4905, (514) 844-4155 ext.

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890