Groupe Bikini Village inc.
TSX : GBV

Groupe Bikini Village inc.

January 24, 2006 14:24 ET

Groupe Bikini Village Debenture Holders Agree to Exchange Debentures for Common Shares of the Corporation

BOUCHERVILLE, QUEBEC--(CCNMatthews - Jan. 24, 2006) - Groupe Bikini Village inc. (TSX:GBV) ("the Company"), is pleased to announce that at a meeting held earlier today, 100% of 12% unsecured debentures due 2008 holders having in aggregate 68% of the total principal amount of 12% debentures outstanding approved the plan of transaction and arrangement.

As a result, and subject to homologation by the Superior Court of the Province of Quebec, all of the outstanding 12% debentures, or $15,571,500 in principal amount and accrued interest to November 4, 2005, when the Company obtained a court order under the Companies' Creditors Arrangement Act, will be exchanged for common shares of the Company. The exchange ratio will be the lower of $0.25 being the volume weighted average five-day share price prior to November 4, 2005 or such five day average prior to the judgment homologating the arrangement accepted by the debenture holders.

"We are pleased with the strong support shown by our debenture holders in the continuity of Groupe Bikini Village," said Leslie E. Glazerman, Interim CEO and Interim CFO of Groupe Bikini Village. "The conversion of the debentures is a necessary step as will remove a significant financial burden on the Company. We will be in a much stronger financial position to explore further financial and or strategic alternatives going forward. Having recently refocused our activities on our swimwear division while continuing our cost containment efforts we feel that we are continuing to address the future challenges of the business in a positive and realistic manner."

Groupe Bikini Village expects to submit a request for homologation before the Quebec Superior Court to ratify the transaction and amendment plan on or about January 27, 2006. If homologated, and subject to customary regulatory approvals, it is expected that the effective date of the exchange of debentures for shares would be on or about February 20, 2006.

New ticker symbol

Groupe Bikini Village also announces that effective at market open this morning its symbol on the Toronto Stock Exchange was changed from MOD to GBV. The new stock symbol better reflects Groupe Bikini Village's new corporate name.

ABOUT GROUPE BIKINI VILLAGE INC.

Groupe Bikini Village inc.'s swimwear division operates 57 swimwear boutiques in Quebec and Ontario under the Bikini Village and Ocean Bikini Village banners. The company employs approximately 400 people.

Forward looking statements

This news release contains certain forward-looking statements concerning our future operations, economic performances, financial conditions and financing plans. These statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate in the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks, uncertainties and assumptions. Consequently, all of the forward-looking statements made in news release are qualified by these cautionary statements, and there can be no assurance that the results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us and our subsidiaries or their businesses or operations.

We undertake no obligation and do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.

Contact Information

  • Groupe Bikini Village inc.
    Mark Boutet
    (514) 843-2385