MONTREAL – Prestige Telecom Inc. (TSXV:PR) said Wednesday that a statutory majority of creditors have approved a company proposal for payment under the Bankruptcy and Insolvency Act.
The Quebec-based provider of network engineering, materials, installation and support services for wireline, wireless and cable television networks, said 71 per cent of creditors who hold 81 per cent of claims on the company approved the proposal at a meeting Tuesday.
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It involves the acceptance of an offer from 7922825 Canada Inc., an affiliate of Thornhill Investments Inc., that purchased the company’s assets to acquire its tax losses.
The offer would see the affiliate, Netricom, become the sole shareholder in return for $400,000 in cash, less professional fees to complete the transaction, subject to a minimum cash consideration of $100,000.
Under the proposal, subject to court approval, creditors will be given the opportunity to share in a limited cash pool comprised of cash on hand and proceeds from the Netricom transaction.
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