Shermag receives extension on payment plan
Has until Sept. 8 to present proposal to creditors
Michael J. Knell -- Furniture Today, June 5, 2008
SHERBROOKE, Quebec — Shermag has been granted an extension by the Québec Superior Court and now won’t have to present a proposal to its creditors until Sept. 8.
The full-line manufacturer and importer sought protection from its creditors under the Companies’ Creditors Arrangement Act, the equivalent of Chapter 11 in the United States, on May 5. The court originally gave the company until June 4 to prepare plans to repay approximately C$30 million in debt.
The court also relieved Shermag of its obligation to prepare and publish quarterly results for the period after May 5.
Shermag’s 2008 fiscal year ended at the end of March, but it has not released financial results for the fourth quarter and year. However, in its original court filing, the company estimated that sales for the 11 months ending this past February were approximately C$93 million, compared with C$155 million for the fiscal year that ended in March 2007.
Shermag didn’t say when its 2008 financial results will be published or when it will hold its annual general meeting of shareholders.
