iMarketing Solutions Group Inc. Commences Formal Restructuring Proceeding and
Files for Protection Under the Companies' Creditors Arrangement Act
TORONTO, April 12, 2013 /CNW/ - iMarketing Solutions Group Inc. (CNSX: IMR)
(the "Company"), a North American integrated marketing services provider of
direct marketing solutions for not-for-profit organizations, political
organizations and professional associations, announced today that it has
commenced restructuring proceedings by filing for and being granted
protection under the Companies' Creditors Arrangement Act ("CCAA"). The
Company's Canadian and U.S. subsidiaries have also been granted protection
under the Initial Order. The Company has applied to have the Initial Order
and the CCAA proceedings recognized in the United States pursuant to Chapter
15 of Title 11 to the United States Code (the "Recognition Order"). The effect
of the Recognition Order, if granted, will be that the Initial Order will be
recognized and enforced in the U.S. and the assets of the Company and its
subsidiaries will be subject to the protection granted under the Initial Order
and the CCAA proceedings in Canada.
Pursuant to the Initial Order, Duff & Phelps Canada Restructuring Inc. was
appointed as the Company's CCAA monitor (the "Monitor"). The Monitor's role
is to work with the Company to assist it to complete its restructuring process
and to oversee certain restructuring activities.
During the restructuring period, the Company intends to continue to operate in
the normal course. In order to do so, the Company has arranged a
Court-approved loan facility to fund the business.
The principal purpose of these restructuring proceedings is to create a
stabilized environment in order to carry out a process to solicit investors,
strategic partners, plan sponsors or purchasers for the Company's business and
assets to preserve its going-concern value.
During the CCAA proceedings, Upkar Arora will be retained as the Company's
Chief Restructuring Officer. Mr. Arora is a seasoned professional who has
experience working with companies in these situations.
The Company's normal day-to-day operations and each of its core businesses are
expected to continue without interruption.
The Company is confident that the protection resulting from the CCAA filing
will provide the Company with the stability it requires in order to advance
and efficiently execute a restructuring plan that is in the best interests of
its customers, creditors, employees and other stakeholders.
This news release includes certain forward-looking information that is based
upon current expectations, which involve, among other things, risks and
uncertainties associated with the Company's business and the restructuring
process. Forward-looking information in this news release includes, among
others, statements with respect to the timing and continuance of CCAA
protection, the restructuring process and potential opportunities for the
restructured business. Any statements contained herein that are not statements
of historical facts may be deemed to be forward-looking information, including
those identified by the expressions "anticipate", "believe", "plan",
"estimate", "expect", "intend", "will", "may", "should", "could", and similar
expressions to the extent they relate to the Company or its management. The
forward looking information is not historical fact, but reflects the Company's
current expectations regarding future results or events. Forward-looking
information is subject to a number of risks, uncertainties and assumptions
that may cause the Company's actual results to differ materially from those
discussed in the forward-looking information, and even if such actual results
are realized or substantially realized, there can be no assurance that they
will have the expected consequences to, or effects on the Company. Factors
that could cause actual results or events to differ materially from current
expectations include, among other things, the Company's revenue streams being
consistent with historical patterns, adjusted to reflect the Company's recent
cost-cutting initiatives and changes to its strategic direction; customers
continue to pay the Company pursuant to contract terms for ongoing project
work performed by the Company, credit and market risks, the uncertainty
involved in court proceedings; changes to licensing and regulations affecting
the Company's activities; uncertainties relating to the availability and costs
of financing needed in the future; the ongoing operation of the Company's
business and other factors, including without limitation, those listed in the
Company's MD&A for the three months and nine months ended September 30, 2012
under the heading "Risks and Uncertainties".
Upkar Arora Chief Restructuring Officer
SOURCE: iMarketing Solutions Group Inc.
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CO: iMarketing Solutions Group Inc.
-0- Apr/12/2013 22:36 GMT
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