SHERBROOKE, QC, June 4 /CNW Telbec/ - Shermag Inc. ("Shermag") (TSX:SMG)
today announced that it is launching a public tender process for the sale of
all of its non-core assets, as well as its two core-businesses which will
remain as going concerns, in an effort to finalize its restructuring process.
Earlier today Shermag obtained an order from the Québec Superior Court
approving such tender process. Geosam Investments Limited, Shermag's secured
lender, fully supports the tender process. The management and the independent
members of the Board of Directors of Shermag believe that the tender process
is currently the best means through which Shermag can restructure its
business. However, Shermag will continue to canvas any scenario available.
Shermag has also received a 60-day notice of exercise of hypothecary
rights from its secured creditor, Geosam Investments Limited. The notice
period expires on June 16, 2009 and Shermag will provide further information,
if any, with respect to such notice or related developments at the relevant
RSM Richter Inc., the court appointed Monitor for the CCAA proceedings,
is managing the tender process. The Monitor also posts Court filings and other
information relating to Shermag on its Website, www.rsmrichter.com.
Shermag Inc., headquartered in Sherbrooke, Québec, designs, produces,
markets and distributes high-quality residential furniture. Shermag presently
has 232 active employees and is a manufacturer and importer with its
manufacturing operations and global sourcing division.
For further information:
For further information: Shermag Inc., (819) 566-1515