SHERBROOKE, QC, June 4 /CNW Telbec/ - Shermag Inc. (TSX: SMG) today
announced that it has obtained an order from the Québec Superior Court to
extend to September 8, 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 under the Companies' Creditors Arrangement Act ("CCAA"). The
purpose of the stay of proceedings is to provide the Company with an
opportunity to develop a plan of arrangement to propose to its creditors.
In its order, the Court also relieved Shermag of any obligation to
prepare any quarterly financial statements, for any quarter ending after
May 5, 2008, until the conclusion of the CCAA proceedings.
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 more than 753 people and is a vertically integrated manufacturer and
importer with its own cutting rights, sawmill, veneer facility, 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