Farber Financial Group

Farber Financial Group

April 14, 2011 10:05 ET

Media Statement: Tabi International Corporation Gift Cards

TORONTO, ONTARIO--(Marketwire - April 14, 2011) - A. Farber & Partners Inc. ("Farber"), the Proposal Trustee of the cross-Canada retail clothing chain, Tabi International Corporation ("Tabi" or the "Company"), today released the following statement regarding gift cards held by Tabi customers:

On February 16, 2011, Tabi filed a Notice of Intention to Make a Proposal ("NOI"), pursuant to the Canadian Bankruptcy & Insolvency Act ("BIA"). Farber was appointed as Proposal Trustee. The NOI filing provides the Company with protection from creditors while it attempts to restructure its affairs and formulate a Proposal to its creditors. The NOI process does not mean that the Company is bankrupt.

During the NOI process, Farber is not in control of the day-to-day operations or decision-making of Tabi. The Proposal Trustee's role is to monitor the affairs of the Company; assist the Company in its efforts to develop a Proposal; and to communicate with creditors as to the process and ultimately to assist creditors in evaluating the Proposal, if Company is able to file one.

Farber assisted the Company in its efforts to sell its assets as a going concern. Unfortunately, those efforts did not result in a viable going concern offer and Tabi is now in the process of a store-wide liquidation sale of its inventory, with the assistance of liquidators, HMR Canada Inc./GBRP Inc.

All creditors and amounts outstanding as at the date of the filing of the NOI are frozen by force of the BIA. Unfortunately, gift card holders are in the same legal position as suppliers who haven't been paid by Tabi. They are unsecured creditors and will only be entitled to a recovery on the same basis as all other unsecured creditors. Neither the Company nor the liquidator is able to allow the redemption of the gift cards in the liquidation sale.

Tabi customers who have an outstanding balance on their gift card should contact Farber by sending an email to tabi@farberfinancial.com and providing the following information:

  1. Name
  2. Mailing address and phone number
  3. Amount of unredeemed Gift Card
  4. Gift Card number

Providing this information to Farber will ensure that Farber has the contact information and ensure gift card holders receive further correspondence from Farber on Tabi's Proposal to Creditors. For more information on Tabi, please visit: www.farberfinancial.com or www.tabi.ca.

About Farber Financial Group

A. Farber & Partners Inc. is a member of the Farber Financial Group. Since 1979, Farber Financial Group has provided a range of specialized financial services including corporate insolvency and restructuring, forensic accounting, fraud investigations, asset recovery, corporate finance, mergers and acquisitions, business valuations, distressed financial advisory services, turnarounds and crisis management, interim CEO, COO, CRO and CFO management, profit enhancement and strategic opportunity assessments. A more complete description of these services may be found on our website at www.farberfinancial.com.

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