RSM Richter

RSM Richter
Câble Satisfaction International Inc.

Câble Satisfaction International Inc.

August 03, 2006 18:29 ET

CSII Implements CCAA Plan and Completes Sale of Cabovisão to Cogeco Cable

MONTREAL, QUEBEC--(CCNMatthews - Aug. 3, 2006) - Cable Satisfaction International Inc. ("CSII")(TSX:CSQ) and RSM Richter Inc., in its capacity as Monitor and Interim Receiver of CSII, are pleased to announce that CSII's Second Amended and Restated Plan of Arrangement and Reorganization (the "Plan") under the Companies' Creditors Arrangement Act (Canada) has been implemented.

Upon implementation of the Plan, (a) all of the existing shares of CSII were cancelled, (b) newly-created common shares of CSII representing 42% of its common shares were issued to Catalyst Fund Limited Partnership I ("Catalyst"), (c) rights to purchase common shares of CSII (the "Rights") representing 28% of the common shares were issued to affected creditors under the Plan and (d) common shares representing 30% of its common shares were issued to affected creditors under the Plan in full satisfaction of their claims against CSII.

CSII is also pleased to announce the completion of the previously announced sale of its wholly-owned subsidiary, Cabovisao-Televisao por Cabo, S.A. ("Cabovisao") to Cogeco Cable Inc. ("Cogeco").

The transaction with Cogeco, which resulted in a subsidiary of Cogeco acquiring Cabovisao, the second largest cable operator in Portugal, also included the purchase of debt and the payment of liabilities of Cabovisao. The purchaser also assumed a normalized working capital deficiency of 20 million euros. The net proceeds to be received by CSII from the sale of Cabovisao and the implementation of the Plan, after deducting fees and expenses, subject to a working capital adjustment after closing, are expected to be in excess of 200 million euros.

CSII will hold a shareholders' meeting on September 7, 2006 to approve a return of capital in order to distribute proceeds from the transaction to the holders of the common shares distributed in connection with the implementation of the Plan. Further details concerning the return of capital to CSII's shareholders will be contained in an information circular that will be mailed to shareholders and will be available on shortly.

CSII has also issued a notice of redemption to its transfer agent in respect of the Rights, which provides for the redemption of the Rights on August 30, 2006. The Notice of Redemption will be included in the materials to be sent to shareholders in connection with the September shareholder meeting.

Contact Information

  • Cable Satisfaction International Inc.
    Gabriel de Alba
    (416) 945-3020
    (416) 945-3060 (FAX)
    RSM Richter Inc.
    as Monitor and Interim Receiver
    Philip Manel
    (514) 934-3451
    (514) 934-3504 (FAX)