Câble Satisfaction International Inc.

Câble Satisfaction International Inc.

June 02, 2006 09:06 ET

Cable Satisfaction International Inc. Announces Agreement to Sell Cabovisao to Cogeco Cable

MONTREAL, QUEBEC--(CCNMatthews - June 2, 2006) - RSM Richter Inc. (formerly known as Richter & Associes Inc.), in its capacity as Monitor and Interim Receiver of Cable Satisfaction International Inc. ("CSII") (TSX:CSQ), and not in its personal capacity, announced today that CSII has entered into an agreement with Cogeco Cable Inc. ("Cogeco") and Catalyst Fund Limited Partnership I to sell CSII's wholly-owned indirect subsidiary Cabovisao - Televisao por Cabo, S.A. ("Cabovisao"), the second largest cable operator in Portugal. A copy of the agreement has been filed with a material change report of CSII and is available at www.sedar.com and on RSM Richter's website at www.rsmrichter.com under "Insolvency Files--Other Insolvency Files".

The purchase price is based on a Cabovisao enterprise value of 464.9 million euros, from which will be deducted Cabovisao's Senior Secured Debt (which will be purchased or repaid in connection with the sale transaction) and certain other obligations of Cabovisao, including tax liabilities, certain trade payables and other fees and expenses. Cogeco Cable will assume a normalized working capital deficiency of 20 million euros. The purchase price will be adjusted after closing to reflect any variation from the normalized working capital deficiency at closing.

The transaction is subject to the granting of an Order by the Superior Court of Quebec, in the context of proceedings filed by CSII under the Companies' Creditors Arrangement Act (Canada), to the implementation of CSII's Second Amended and Restated Plan of Arrangement and Reorganization ("Amended Plan"), and to other customary conditions. The Monitor will be filing forthwith a motion by which it will be seeking the approval of the Court with respect to the transaction.

Following the closing of the Cabovisao sale to Cogeco, CSII will distribute the net proceeds from the sale (less debtor-in-possession loans made by Catalyst to CSII in connection with the Amended Plan and certain other fees and expenses of CSII) to the holders of CSII rights and common shares which will have been distributed to CSII's creditors pursuant to the implementation of the Amended Plan.

Further details concerning the expected recovery to CSII's creditors will be contained in a forthcoming Monitor's report that will be filed in support of the Court material and which will be made available on the Monitor's website. A further press release will be issued upon the filing of these materials with the Court.

As previously announced, the Amended Plan provides for no distribution to be made to the existing shareholders, and no distributions of the proceeds from the sale of Cabovisao to Cogeco Cable will be made to CSII's existing shareholders. As a result, the currently outstanding subordinate voting shares of CSII continue to have no value under the Amended Plan.

Contact Information

  • RSM Richter Inc.
    (formerly know as Richter & Associes Inc.),
    as Monitor and Interim Receiver
    Philip Manel
    (514) 934-3504 (FAX)
    (514) 934-3451