MARKHAM – Cable and telecom equipment and services supplier Cygnal Technologies said today that the Ontario Superior Court of Justice approved the company’s plan of arrangement and reorganization.
Assuming all pre-conditions to the plan implementation have been met, it is to take effect on the first moment on the date upon which the certificate of amendment is issued under the Ontario Business Corporations Act in respect of the articles of reorganization of Cygnal to be filed by Cygnal in accordance with the plan, says the press release outlining the company’s next steps under bankruptcy protection.
It is currently anticipated to be implemented and become effective on April 1, 2008.
The plan provides that the creditors with proven claims “will receive cash and, if applicable, promissory notes in compromise and settlement of their claims and provides for the reorganization of the capital of Cygnal,” says the press release.
The plan also calls for all of the issued and outstanding shares of Cygnal to be converted into redeemable shares, “which will be automatically redeemed and cancelled, and rights associated with outstanding options and warrants will be extinguished without, in effect, payment of any consideration. Cygnal’s directors have passed a resolution authorizing the delisting of Cygnal’s common shares from the TSX, which is expected to occur on or about the implementation date of the Amended Plan. Upon implementation of the Amended Plan, a new class of common shares will be issued to a newly created affiliate of Laurus Master Fund, Ltd. and this entity will become the sole shareholder of Cygnal,” reads the release.
Cygnal’s shares traded Friday on the TSX at $0.20.
