Thursday March 15, 11:22 am Eastern Time
Press Release
Saco Announces Issuance of Initial Order Pursuant to the Companies' Creditors
Arrangement Act
MONTREAL, QUEBEC--Saco SmartVision Inc. announces that its motion for the issuance of an initial order pursuant to the Companies'
Creditors Arrangement Act (the ``Act'') was granted today by the Bankruptcy and Insolvency division of the Superior Court in the district of
Montreal. The initial order provides for a stay of all proceedings against Saco for an initial period of thirty days, which period may be extended by
the Court. In addition, the initial order authorizes Saco to file a plan of compromise or arrangement with its creditors in accordance with the Act.
Ernst & Young Inc. has been appointed as Monitor under the relevant provisions of the Act in order to assist Saco in discussions with its
creditors and in the preparation and filing of the plan of compromise or arrangement.
Saco, which was profitable every year from 1989 until 1997, has been experiencing financial difficulties since then. Management, however, firmly
believes that Saco remains a world leader in the design and manufacture of large LED video screens, destined primarily for use in the
entertainment and sports industries. Over the past few months, Saco has undertaken positive steps with a view to realigning its corporate
structure and balance sheet. In this regard, the third quarter of 2000 was highlighted by the installation of SMARTVISION® screens at Ohio
State University and at the University of Arkansas. In the view of management, these projects, which have resulted in several new orders, have
opened up new market segments for Saco. Further, Saco is presently in discussions with potential partners who are considering injecting
sufficient capital into Saco to allow it to re-capitalize, renegotiate its debt and return to profitable growth. The present proceedings will give Saco
the time that it needs in order to attain these objectives.
Saco further announces that Mr. Rhéal Coulombe and Mr. Roger Samson recently resigned from the board of directors of Saco. Saco wishes to
thank them for their contribution.
Saco's shares are listed on the Toronto Stock Exchange.
Contact:
Saco SmartVision Inc.
Mr. Ken Cavanagh
Public Relations
(514) 843-2386 |
