Prosys Announces That One of its Subsidiaries has Filed a Notice of Intention Pursuant to the Bankruptcy and Insolvency Act
September 24 2008 - 9:36AM
Marketwired
Prosys-Tech Corporation ("Prosys" or the "Corporation") (TSX
VENTURE: POZ), announces that the management of its subsidiary,
Prosys-Tec Computers Inc., (the "Subsidiary"), pursuant to its
press release dated August 13, 2008, has filed a Notice of
Intention pursuant to Chapter 50.4 of the Bankruptcy and Insolvency
Act, dated September 24, 2008. This decision is part of the
previously announced restructuring process to abandon the white box
assembly business following the deterioration of its financial
position and market circumstances in which the Subsidiary operates.
The Subsidiary will continue to operate under the Bankruptcy and
Insolvency Act protection. The Subsidiary is not bankrupt. Rights
and remedies of creditors against the Subsidiary, including rights
and remedies of unpaid suppliers, are stayed for an initial 30 day
period. This stay period may be further extended with leave of the
Court and in accordance with the Bankruptcy and Insolvency Act.
All alternatives are currently under study in order to obtain
the maximum value for its assets for its sole shareholder, the
Corporation. Moreover, the Subsidiary has negotiated and has made
contractual arrangements with its main creditors in order to ensure
that the abandonment of the white box assembly business takes place
in the best interest of creditors and of the sole shareholder.
About Prosys
Prosys is a distributor of information technology products
having offices in Montreal, Quebec and Ottawa. Prosys maintains its
participation in CDMS Inc and Peak Positioning Inc.. Through CDMS,
Prosys also offers a wide range of products, including a 24/7
multilingual technical service desk, network operations and
monitoring, managed services, IT consulting and a host of value add
hardware solutions. The Corporation currently holds 40% of Peak's
issued shares and has an option to increase its participation in
Peak to 50.1%. The investment in Peak is in the scope of the
Corporation's steps to diversify the global offer of services to
its current customers and to improve Prosys' positioning for the
development of the SMB market. For more information regarding CDMS
and Peak, please visit www.cdmsfirst.com and
www.peakpositioning.com.
The TSX Venture Exchange Inc. has in no way passed upon the
merits of the proposed Transaction and has neither approved nor
disapproved the contents of this press release.
Contacts: Prosys Tech Corporation Mr. Georges Hebert President
and Chief Executive Officer 514-255-3454, extension 270
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