SRX Post Holdings Inc.
TSX : SRX

October 20, 2008 18:02 ET

Superior Court of Quebec Sanctions SRX Post Holdings' Plan of Compromise and Reorganization

MONTREAL, QUEBEC--(Marketwire - Oct. 20, 2008) - SRX Post Holdings Inc. (TSX:SRX) ("SRX" or the "Company") announced today that its amended plan of compromise and reorganization (the "Plan") under the Companies' Creditors Arrangement Act and the Canada Business Corporations Act was sanctioned by the Superior Court of Quebec.

It is expected that the Plan will be implemented by November 14, 2008. The Plan is in furtherance of the previously announced arrangement agreement, entered into by SRX on August 15, 2008 with Bonterra Energy Income Trust, Bonterra Energy Corp. (collectively, "Bonterra") and Novitas Energy Ltd. providing for the reorganization and recapitalization of the parties thereto. The Plan and the concurrent reorganization of Bonterra will result in (i) all liabilities of the Company being extinguished or settled, (ii) Bonterra Trust making an investment of approximately $11,250,000 in the Company, (iii) the share capital of the Company being reorganized to enable the redemption of all outstanding common shares for no consideration and (iv) the corporate name of the Company being changed to Bonterra Oil & Gas Ltd. or such other name acceptable to Bonterra.

A copy of the Plan and related documents are available on RSM Richter's website at www.rsmrichter.com.

About SRX Post-Holdings Inc.

The Company has been operating under the protection of the Companies' Creditors Arrangement Act (CCAA) since November 19, 2007. On August 14, 2008, the protection was extended to December 19, 2008.

On March 24, 2008, the Company entered into a definitive agreement with Lagasse Communications & Industries Inc. (Groupe Lagasse) to sell all of its property and assets related to the WiMAX business and symmetry™ line of products. The transaction closed on April 4, 2008 and the Company received cash proceeds of $6.05 million before transaction costs of $1.49 million. Following the sale of substantially all of its assets to Groupe Lagasse, the Company ceased operations and continues to pursue the monetization of its remaining assets.

Contact Information

  • SRX Post Holdings Inc.
    Marc Girard
    Senior Vice President and CFO
    514-3355-2429, Ext. 4690