Menu Foods Income Fund
TSX : MEW.UN

Menu Foods Income Fund

November 14, 2005 09:04 ET

Menu Foods Income Fund

TORONTO, ONTARIO--(CCNMatthews - Nov. 14, 2005) –

Attention Business Editors

NOT FOR RELEASE OVER US NEWSWIRE SERVICES

Menu Foods Income Fund announced today that it learned subsequent to the release of its third quarter results that its subsidiary, Menu Foods Limited, is currently not in compliance with one of the financial covenants under the terms of its senior secured notes. Subject to obtaining the consent of the holders of not less than 51% of the senior secured notes, the failure to be in compliance with this covenant could prevent the Fund from making distributions to its unitholders, including the distribution that the Fund was anticipating to make on Tuesday, November 15, 2005.

Menu Foods is in discussions with the four holders of senior secured notes to obtain a consent to allow the Fund to continue to make distributions to its unitholders, including the distribution on November 15, 2005. While Menu Foods believes that the discussions are proceeding constructively, there can be no assurance that these discussions will be successfully completed or that they will be completed on terms favourable to Menu Foods. The continued default under the terms of its senior secured notes may prompt a cross-default under Menu Food's operating credit facility.

Menu is the leading North American private-label/contract manufacturer of wet pet food products sold by supermarket retailers, mass merchandisers, pet specialty retailers and other retail and wholesale outlets. Menu currently produces more than one billion containers per year.

Contact Information

  • Menu Foods GenPar Limited
    Mark Wiens
    Chief Financial Officer
    (905) 826-3870