May 04, 2009 16:19 ET

Raymor Announces Approval of Proposal by Creditors and the Court

BOISBRIAND, QUEBEC--(Marketwire - May 4, 2009) - Raymor Industries Inc. ("Raymor") (TSX VENTURE:RAR) is pleased to announce today that the Superior Court has approved on May 1st, 2009 its proposal which had been submitted to its unsecured creditors (the "Creditors") pursuant to the Bankruptcy and Insolvency Act (the "Proposal").

At a meeting held on April 30 2009, the Proposal had been approved by 92% of the Company's Creditors attending same personally or by proxy.

In the judgment rendered on May 1, 2009, the Superior Court also granted Raymor the right to hold a single annual shareholders meeting for both fiscal years ended on December 31, 2007 and December 31, 2008 no later than July 15, 2009. The date of the annual shareholders meeting will be disclosed in due time depending on the progress and completion of the Company's year end financial statements ending December 31, 2008.

The Company is still in the process of restructuring its activities as per its press releases dated April 3, 2009 and April 16, 2009. The Company resumed its operations in the first week of April 2009.

The management intends to continue providing updates with respect to Company's restructuring plan on a regular basis and in accordance with its continuous disclosure obligations under securities laws.

The common shares of Raymor remain suspended from trading on the TSX Venture Exchange. Raymor is currently taking the necessary steps to reinstate the trading of its common shares.

The approved Proposal provided for a maximum of $750,000 (the "Total Amount") to be distributed in the following manner:

a) All the Creditors will receive a maximum amount of a $1,000 or, if the value of a Creditor's debt is less than $1,000, an amount covering its debt. Such amounts will be paid to the Creditors 60 days following approval of the Proposal by the Court;

b) With regards to the balance of the Total Amount after deduction of the amount referred to in paragraph a) above (the "Balance of the Debt"), each Creditor will be paid on a pro rata basis of the Balance of the Debt. The Creditors will have the option of i) being paid their Balance of the Debt in four (4) equal cash payments payable every 90 days, as of December 15, 2009, until September 15, 2010 or, ii) advising the Trustee before November 15, 2009, that they wish to participate in a shares for debt transaction (the "Transaction") in accordance with Policy 4.3 of the TSX Venture Exchange by converting 100% of their Balance of the Debt into units of Raymor (the "Units"). Each Unit will have a value of $0.15 and will consist of one common share and one common share purchase warrant. Each common share purchase warrant will entitle the holder thereof to acquire one additional common share of Raymor at a price of $0.25 per share for a period of 12 months expiring on November 15, 2010. In lieu of Units, the insiders will be entitled to common shares of Raymor, subject to the above-mentioned terms which are otherwise applicable.

To be eligible to participate in the Transaction, the Creditors will have to complete a form entitled "Option to Convert" attached to the Proposal and return it to the Trustee before November 15, 2009. The common shares and the common share purchase warrants issuable pursuant to the Transaction will be delivered after November 15, 2009. The Transaction is subject to receipt of all necessary approvals from the TSX Venture Exchange.

The foregoing information may contain forward-looking statements relating to the future performance of Raymor. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from Raymor's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by Raymor with the TSX Venture Exchange and securities regulators. Raymor does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.


Stephane Robert, President and Chief Operating Officer


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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