RAYMOR INDUSTRIES INC.
TSX VENTURE : RAR

RAYMOR INDUSTRIES INC.

April 03, 2009 14:30 ET

Raymor Releases Latest Updates and Announces an Investment of up to $1,300,000

MONTREAL, QUEBEC--(Marketwire - April 3, 2009) - Raymor Industries Inc. ("Raymor") (TSX VENTURE:RAR) is pleased to announce that a significant milestone in its restructuring process has been completed. As previously announced on February 24, 2009, the Superior Court of Quebec denied an extension to allow Raymor to file a proposal to its creditors and as a result Raymor had been unable to file a proposal to its creditors and was deemed bankrupt. Raymor filed an Inscription in appeal on March 2, 2009, whereby it sought to have the decision of the Superior Court reversed. On March 30, 2009, the Court of Appeal allowed the appeal.

The judgment of the Court of Appeal allows Raymor, among other things, to immediately resume operations and commercial activities. The appointment of the firm Villeneuve Venne Coossa Inc. as trustee was revoked and replaced by KPMG Inc. KPMG Inc. has been given control of Raymor's cash flow and disbursements and will oversee the restructuring process. The Court of Appeal also granted other reliefs including allowing Raymor to file a proposal to its creditors on or prior to April 15, 2009 and to call a meeting of creditors in order to vote on the proposal on April 30, 2009 at the latest. Management is currently working on a proposal.

As a result of the judgment of the Court of Appeal, Raymor is now in the same position that it was prior to the February 20, 2009 judgment of the Superior Court, other than the involvement of KPMG Inc. as noted above. Thus, the Superior Court judgment had not affected the previous orders placed with Raymor. With operations and commercial activities scheduled to resume in the first week of April 2009, Raymor will be able to continue to serve its customers.

In connection with Raymor's restructuring plan, a debenture offering of a maximum of $1,300,000 is expected to be completed. Each debenture, bearing an annual interest rate of 25%, will mature two years from its issuance and will be convertible at the holder's discretion into units of Raymor at a conversion price of $0.05 per unit for an initial period of 12 months and thereafter at the price of $0.10 for an additional period of 12 months (the "Conversion Price"). Each unit will be comprised of one common share and one common share purchase warrant. Each common share purchase warrant will entitle the holder thereof to purchase one additional common share of Raymor at the price of $0.10 per common share for an initial period of 12 months and thereafter at the price of $0.15 per common share for an additional period of 12 months. Raymor may also, at its discretion, force the conversion of the debentures at the Conversion Price if the common shares of Raymor trade on the TSX Venture Exchange (the "Exchange"), for a period of more than 20 consecutive days, at the price of $0.20 or more during the first year and at the price of $0.40 or more during the second year. The debentures may also be converted by Raymor at the Conversion Price upon maturity of the debentures. The interest on the debentures will be capitalized and payable in the form of securities of Raymor, subject to shares for debt provisions of the Exchange. The debenture offering is subject to the approval of the Exchange.

After judgment of the Superior Court of Quebec (the February 20, 2009), the trading of the shares of Raymor was suspended on February 24, 2009 for failure to meet the Exchange's tier maintenance requirements. Raymor has filed an application in order to reinstate the trading of its shares. The Exchange has initiated its review.

Mr. Stephane Robert, President and Chief Operating Officer of Raymor is pleased to announce the appointment of three new members to the board of directors of Raymor. The new members, Mr. Rolland Veilleux, Mr. Georges Alfred Durst and Mr. Normand Goupil, are part of a group of investors involved in the restructuring process of Raymor. Mr. Rolland Veilleux was appointed Chairman of the board of directors and Chief Executive Officer. Mr. Stephane Robert will continue to act as President and Chief Operating Officer of Raymor.

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

ON BEHALF OF THE BOARD OF DIRECTORS

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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