MONTREAL – Prestige Telecom is filing for bankruptcy protection and has begun the process to sell off its assets.
In a statement on Wednesday, the company confirmed that it has filed a notice of intention to submit a proposal to its creditors pursuant to the Bankruptcy and Insolvency Act (Canada), and appointed Raymond Chabot Inc. as trustee. It is also selling substantially all of its assets to a company controlled by Thornhill Investments Inc. with the proceeds distributed to its creditors.
“The foregoing steps are taken as a result of the continuing deterioration of the Company's precarious liquidity position”, reads the statement. “The sale of the Company's assets to Thornhill is considered to be the best transaction possible further to a formal strategic review process undertaken in June 2011 and pursuant to which the Company conducted a competitive bidding process overseen by a special committee of the board of directors with the assistance of external financial and legal advisors.”
Prestige also announced the resignations of Robert Blain and Pierre Yves Méthot as company directors and Pierre Yves Méthot as chairman and CEO.
Prestige Telecom provides network engineering, materials furnishing, installation and support services (commonly referred to as EF&I services) required to construct, operate and maintain wireline, wireless and cable television networks. It has over 1,000 professional and technical personnel operating from 19 service locations in nine provinces.
