DoveCorp Enterprises Inc.
TSX VENTURE : DOV

DoveCorp Enterprises Inc.

July 12, 2007 10:20 ET

DoveCorp Announces Restructuring Plan Under CCAA

TORONTO, ONTARIO--(Marketwire - July 12, 2007) - DoveCorp Enterprises Inc. (TSX VENTURE:DOV), ("DoveCorp" or the "Company") announced today that it has decided to initiate a restructuring process for its business under the Companies' Creditors Arrangement Act, or CCAA. The Company anticipates that the CCAA process will provide it with the time and legal protection necessary to complete a process that will include a consideration of all restructuring alternatives, including a marketing effort for the sale of its business.

DoveCorp operates under various trade names, including Dove Cleaners, Cadet Cleaners, Meena Cleaners, Factory Outlet Cleaners and Natural Cleaners.

Filing for CCAA protection is intended to afford the Company the opportunity to address its challenges while protecting the interests of its stakeholders. If the court order is granted, the Company intends to continue to operate while a restructuring strategy is developed and executed.

The Company has a commitment from a lender to provide additional funding in the form of a Debtor-in-Possession facility that should provide adequate liquidity during the restructuring period. DoveCorp anticipates that all salaries, wages, benefits and expenses will continue to be paid and that suppliers will be paid for the goods and services provided post-filing on an ongoing basis. DoveCorp's debt obligations incurred before today's action may be addressed in a restructuring plan.

RSM Richter Inc. will serve as the court-appointed monitor under the CCAA process and will assist the Company in formulating its restructuring plan. The Company will be attempting to maximize the value of its business, including its extensive franchise network.

About DoveCorp:

DoveCorp is a leader in Canada's dry-cleaning and laundry industry, with the only ISO 9001 dry cleaning registration in the world. For more than 10 years, its flagship Dove Cleaners division has been widely recognized by various fashion and industry magazines as among the best premium dry cleaning and laundry services in Canada. At the same time, its Dove Depot, Meena Cleaners, and Natural Cleaners divisions excel in the mass market. DoveCorp's acquisition of Cadet Cleaners, a leader in the Greater Toronto Area for 50 years, has brought the number of DoveCorp's retail locations to 98. In addition, Dove Cleaners Commercial is a full-service provider of linen, uniforms, and mat rentals. The company also provides out-sourced dry cleaning and laundry services.

Forward-looking statements

This document contains forward-looking statements relating to DoveCorp's financial performance, operations or to the environment in which it operates, which are based on DoveCorp's operations, estimates, forecasts, and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, or are beyond the company's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in the company's corporate filings, (posted at www.sedar.com). Consequently, readers should not rely on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, DoveCorp cannot be certain that actual results will be consistent with these forward-looking statements, and the company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release and has neither approved nor disapproved of the contents of this release. The TSX Venture Exchange has in no way passed on the merits of the transaction described herein.

Contact Information

  • DoveCorp Enterprises Inc.
    Sam Mizrahi
    President and CEO
    (416) 782-8788 x 223
    Email: sam@dovecorp.com
    or
    Managing Partners: Pro-Edge Consultants Inc.
    Tracy Weslosky or Fred Cowans
    (416) 581-0177 or 1-866-544-9622
    Email: info@pro-edge.com