Polyair Inter Pack Inc.
TSX : PPK

Polyair Inter Pack Inc.

December 18, 2008 16:00 ET

Polyair Inter Pack Inc. Appoints New Senior Management and Completes Financing

TORONTO, ONTARIO--(Marketwire - Dec. 18, 2008) -

FOR DISSEMINATION ONLY IN THE UNITED STATES

Polyair Inter Pack Inc. ("PPK" or the "Company") (TSX:PPK), a North American producer of protective packaging products, announced today the appointment of several new executives. Gary Tessitore has been appointed CEO effective December 21, 2008 and to the board of directors of the Company with immediate effect. Michael McEntee has been appointed Chief Financial Officer and Martin Gilvarg has been appointed Executive Vice President, both with immediate effect. These executives bring broad experience across a wide range of industries and significant experience in managing businesses in difficult market conditions.

The Company also announced the completion of first tranche of the previously announced exchangeable secured debenture financing by Polyair Corporation, the Company's principal U.S. operating subsidiary, with its principal shareholder Glencoe Skydome Holdings, L.P. ("GSH"). The exchangeable secured debentures ("ESDs") are issuable in two separate tranches of $5 million 9% ESDs (which were issued today) and $3 million 15% ESDs issuable at a subsequent date as the Company may require. Both tranches of ESDs are exchangeable into common shares of the Company at prices of $.05 per share.

The Company also today reached agreement with its principal lender for a restructuring of its $3.3 million term loan, modifications of its loan covenants and an extension of the maturity of its revolver facility to November 1, 2010. The Company prepaid on December 15, 2008 the outstanding $5 million principal amount 6% convertible promissory note to mature in March 2009 by the issuance of 598,802 non-voting, non-participating, redeemable, convertible 6% cumulative Series A Preference Shares.

Robert Gerrity, the interim CEO and PPK Board member stated: "The Company is very pleased with GSH's confidence in the Company and the new senior management team. The combination of the restructuring of the Company's financing agreements with its primary lender, the conclusion of both tranches of additional financing and new leadership, position Polyair well for the anticipated challenging market environment facing the Company in 2009."

Polyair Inter Pack Inc. (www.polyair.com) manufactures and distributes a wide range of protective packaging products and swimming pool solar covers in North America. The Company operates eight manufacturing facilities, seven of which are in the USA where it generates the majority of its sales. All above amounts are in US dollars, unless otherwise noted.

This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, unless registered or pursuant to an applicable exemption from registration.

Certain information included in this news release contains statements that are forward-looking, such as statements relating to anticipated future revenues and profitability of the Company. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Polyair Inter Pack Inc. In addition, Polyair Inter Pack Inc. expressly disclaims any obligation to publicly update or alter its previously issued forward-looking statements.

Contact Information

  • Polyair Inter Pack Inc.
    Stysia Reay
    Investor Relations
    (416) 679-6591
    Website: www.polyair.com