GLOBEL DIRECT, INC.
TSX VENTURE : GBD

GLOBEL DIRECT, INC.

June 13, 2007 17:11 ET

Globel Direct, inc. Granted CCAA Protection

CALGARY, ALBERTA--(Marketwire - June 13, 2007) - Globel Direct, inc. ("Globel" or "the Company") (TSX VENTURE:GBD): For the past several months, Globel has been in default under secured debentures with its major lenders, Quorum Secured Equity Trust, and Express Commercial Services Inc. Accordingly, Globel has been negotiating with those lenders to effect an outside financing to augment working capital in concert with the improvements Globel has achieved of late and to cure these defaults. The parties were unable to reach an agreement on such financing and default notices were received by the company from both lenders, Quorum's dated June 1, 2007 and Express's dated June 4, 2007.

As a result, on June 12, 2007, Globel applied for, and was granted, a court order (the "Order") protection under the Companies Creditors Arrangement Act (CCAA). The Company has organized DIP financing to permit it to carry on business in the ordinary course during the restructuring period, including providing uninterrupted service to customers, paying for goods and services supplied after the date of the Order and the on-going payment of wages and benefits to employees.

"Although this process was not our first choice", says J.R. Richardson, "it gives us time to reorganize our operations and hold talks with our major stakeholders. While this protection is in place, creditors are prevented from taking any action against the Company and we can continue to provide uninterrupted service to our clients. Our restructuring to this point has allowed the Company to achieve profitability and we want to ensure that we continue with that momentum."

The Order has also approved the appointment of KPMG Inc. to act as the Company's monitor in the CCAA proceedings.

About Globel Direct:

Globel Direct inc. is a leading provider of business communications solutions that help organizations inform, educate, service and attract customers more effectively and efficiently. The Company's solutions integrate its expertise in out-sourced marketing, billing, customer support and fulfillment with specialized equipment, proven technologies, and a multi-site delivery infrastructure that enables its clients to target the right audience, in the right format, at the right time and at the right price. For more information about Globel Direct visit www.globel.com.

This document contains forward-looking statements. Some forward looking statements may be identified by works like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. The statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. The Company's actual results could differ materially from those currently anticipated due to a number of factors, including, but not limited to, successful integration of structural changes, including restructuring plans, acquisitions, technical or manufacturing or distribution issues, the competitive environment for the Company's products, the degree of market penetration of the Company's products, and other factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Globel Direct, inc.
    J.R. Richardson
    President
    (403) 531-6579 or Toll-Free: 1-800-551-5721
    (403) 531-6560 (FAX)
    Email: jr@globel.com
    Website: www.globel.com