SHERBROOKE, QC, Sept. 15 /CNW Telbec/ - Shermag Inc. (TSX:SMG) and its subsidiaries (the "Company") today announced that its plan of arrangement (the "Plan") has been duly sanctioned by the Québec Superior Court. The Company had already received the approval of the Plan by the creditors at the meeting of creditors held on September 10, 2009, in conformity with the Companies' Creditors Arrangement Act (the "CCAA"). The Plan can now be implemented.
This is a very important step for the finalization of the Company's reorganization and especially for the transaction that is to take place with le Groupe Bermex Inc., a transaction that has been approved by the Québec Superior Court on August 12, 2009 and that must be concluded by October 16, 2009.
The Plan is available on the Monitor's Website (www.rsmrichter.com).
Shermag has been operating under the protection of the CCAA since May 5, 2008. RSM Richter Inc. is the Court appointed Monitor for the CCAA proceedings.
Shermag Inc., headquartered in Sherbrooke, Québec, designs, produces, markets and distributes high-quality residential furniture. Shermag presently has 219 active employees and is a manufacturer and importer with its 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 evaluation 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.
SOURCE SHERMAG INC.
For further information: For further information: Shermag Inc., (819) 566-1515