OTTAWA, March 31 /CNW Telbec/ - Tarquin Group Inc. ("Tarquin") (TSX
VENTURE: TQN) announced that on March 28, 2008 it received demands for payment
and notices of intention to enforce security from the Royal Bank of Canada
("RBC") and Quorum Secured Equity Trust and Quorum Investment Pool Limited
Partnership (collectively "Quorum"). After a period of 10 days RBC and Quorum
will be in a position to take steps to enforce their security against the
assets of Tarquin and its subsidiaries (the "Tarquin Group of Companies").
Tarquin understands that its secured creditors have entered into an
agreement proposing that Quorum realize on its security over the assets and
businesses of the Tarquin Group of Companies to cause them to be moved to a
new corporation wholly owned by Quorum. Tarquin understands that this
corporation is intended to assume all or part of the secured debt of the
Tarquin Group of Companies as part of the proposed transactions. Tarquin is
not a party to such agreement and can provide no assurances that any of these
actions will be taken.
The Tarquin Group of Companies and their secured creditors have entered
into a forbearance agreement dated as of March 28, 2008 pursuant to which such
creditors have, except as set out in the forbearance agreement, agreed to
refrain from enforcing any rights under any of their credit documents or
demands for payment during a period ending on the earlier of (i) May 2, 2008,
(ii) default by any of the Tarquin Group of Companies under the forbearance
agreement and (iii) the date that all of the obligations to RBC have been
permanently satisfied. On certain conditions, this forbearance period may be
extended with the consent of RBC.
During the forbearance period, it is intended that the Tarquin Group of
Companies will continue to conduct business. In furtherance of this, Tarquin
received $300,000 in secured debt financing from Quorum as of March 28, 2008.
The proceeds of this debt financing will be used to finance the working
capital requirements of the Tarquin Group of Companies. The debt bears
interest at the rate of 8% per annum, is secured against certain receivables
of Dipix Technologies Inc. and is repayable in full on the earlier of (i)
three days after demand by Quorum and (ii) the date such receivables are
Tarquin also announced the resignations of Bob Daly as Chief Financial
Officer of Tarquin and Shane McLean as corporate secretary of each of the
Tarquin Group of Companies, each effective March 28, 2008.
The TSX-Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Investor relations: Donald Gibbs, CEO, Tarquin
Group Inc., (613) 236-3334