MONTREAL – Prestige Telecom has completed the sale of substantially all of its assets to a company controlled by Thornhill Investments Inc. for an aggregate cash consideration of $28 million.
Assets purchased include all contracts of the business, equipment, accounts receivable, customer lists and intellectual property. In addition, Thornhill has assumed liabilities under leasing and business contracts and employment liabilities.
Raymond Chabot Inc., appointed by the Court as receiver, has received the proceeds of the sale for distribution to the company's creditors in accordance with their rank. No proceeds from the sale to Thornhill are expected to remain available for distribution to shareholders and creditors other than Prestige’s main lender and secured creditor, Canadian Imperial Bank of Commerce.
Montreal-based Prestige Telecom filed for bankruptcy protection last week, as Cartt.ca reported.
