SHERBROOKE, QC, Sept. 8 /CNW Telbec/ - Shermag Inc. (TSX: SMG) today
announced that it has obtained an order from the Québec Superior Court
extending to December 10, 2008 the period of the Court-ordered stay of
proceedings against Shermag and its subsidiaries, Jaymar Furniture Corp.,
Scierie Montauban Inc., Mégabois (1989) Inc., Shermag Corporation and Jaymar
Sale Corporation (together referred to as the "Company") under the Companies'
Creditors Arrangement Act ("CCAA"). The purpose of the stay of proceedings is
to provide the Company with an opportunity to develop and file a plan of
arrangement to propose to its creditors and to hold a creditors' meeting.
In its order, the Court also approved the liquidation of surplus
inventory, surplus equipment as well as the sale of the head office building.
The Company has been operating under the protection of the CCAA since
May 5, 2008.
Shermag Inc., headquartered in Sherbrooke, Québec, designs, produces,
markets and distributes high-quality residential furniture. The Company
employs approximately 720 people and is a manufacturer and importer with its
own manufacturing operations and global sourcing division.
This news release contains forward-looking statements about the Company's
operations, objectives, strategies, financial situation and performance. These
statements are made based on assumptions and management's best estimates with
regard to future events. However, the business of the Company is subject to
risks and uncertainties that could cause actual results to differ from
expected results. Important factors that could cause such differences are
changes in pricing pressure being exerted by competitors, particularly
Asian-based companies, or significant movement in the Canadian/US dollar
exchange rate. This is not an exhaustive list. A broader discussion of risk
factors that could affect future performance can be found in the Company's
Annual MD&A and Annual Information Form, filed with Canadian securities
regulatory authorities. Given these risks and uncertainties, investors should
not place undue reliance on forward-looking statements as a prediction of
actual results. The Company disclaims any intention or obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
For further information:
For further information: Shermag Inc., (819) 566-1515