Cygnal’s reorganization gets creditor approval
MARKHAM – Cable and telecom supplier Cygnal Technologies Corporation announced Friday that Cygnal and Accord Communications Ltd. have obtained approval from creditors for their joint plan of arrangement and reorganization dated January 29, 2008.
The approval came during meetings held earlier Friday with affected creditors of Cygnal.
Under with the Companies’ Creditors Arrangement Act (CCAA), approval had to be accepted by not less than a majority of creditors representing two-thirds of the value of the claims in that creditor class, voting at the applicable creditor meeting. At the creditor meetings, the required majority of each class of creditors resolved to authorize, approve and adopt the Plan.
Notwithstanding the resolutions of each creditor class, the directors of the Cygnal Technologies and Accord Communications remain authorized and empowered to amend or not proceed with the resolution in accordance with the plan.
The plan must also be sanctioned by the Ontario Superior Court of Justice under the CCAA, for which a hearing is scheduled for March 17th. It is expected the plan will be implemented and take effect on or before April 1, 2008.
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