MARKHAM – Equipment and services supplier Cygnal Technologies today announced that it obtained orders from the Ontario Superior Court of Justice which, among other things, extend to March 21, 2008 the period of the Court-ordered stay of proceedings against Cygnal and its wholly-owned subsidiaries, Cygnal Technologies and Accord Communications in the Applicants’ proceedings under the Companies’ Creditors Arrangement Act.
The orders also establish a further process to supplement the existing court-ordered process by which certain creditors of the Applicants must prove their claims in the CCAA Proceedings; and set the date for the applicants’ creditor meetings to consider and approve the joint plan of arrangement and reorganization.
“The January 30 Orders extend the existing stay of proceedings to March 21, 2008. The purpose of the stay of proceedings is to provide the Applicants with relief designed to stabilize their operations and business relationships with their customers, suppliers, employees, and creditors and to provide the Applicants with an opportunity to develop and, hold creditor meetings in respect of the Plan, and implement it if approved by affected creditors and the Court,” reads the press release.
On November 23, 2007, the Court made an order establishing a process by which certain creditors of the Applicants must prove their claims. The Claims Procedure Order dealt with claims resulting from termination of employment and repudiation of contracts prior to November 30, 2007. Since November 30, 2007, the Applicants have repudiated additional leasing contracts and terminated additional employees. The January 30 Orders establish a supplementary claims process to deal with claims arising from those subsequent actions.
The January 30 Orders require the Applicants to call, hold and conduct creditor meetings of the Affected Creditors of each Class to consider and vote on the Plan on March 7, 2008. Notice of the meetings, together with a form of proxy, a copy of the Plan, an information circular, a copy of the January 30 Orders (other than the order that extended the stay), a copy of the Monitor’s Report and other relevant documentation will be sent by the Monitor to each Affected Creditor. These materials were submitted to the Court in connection with obtaining the January 30 Orders, adds the release.
