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Prosys Announces That One of its Subsidiaries has Filed a Notice of Intention Pursuant to the Bankruptcy and Insolvency Act MONTREAL, QUEBEC, CANADA--(MARKET WIRE)--Sep 24, 2008 -- Prosys-Tech Corporation ("Prosys" or the "Corporation")
(CDNX:POZ.V - News), announces that the management of its subsidiary,
Prosys-Tec Computers Inc., (the "Subsidiary"), pursuant
to its press release dated August 13, 2008, has filed a
Notice of Intention pursuant to Chapter 50.4 of the Bankruptcy
and Insolvency Act, dated September 24, 2008. This decision
is part of the previously announced restructuring process
to abandon the white box assembly business following the
deterioration of its financial position and market circumstances
in which the Subsidiary operates. The Subsidiary will continue to operate under the Bankruptcy and Insolvency Act protection. The Subsidiary is not bankrupt. Rights and remedies of creditors against the Subsidiary, including rights and remedies of unpaid suppliers, are stayed for an initial 30 day period. This stay period may be further extended with leave of the Court and in accordance with the Bankruptcy and Insolvency Act. All alternatives are currently under study in order to obtain the maximum value for its assets for its sole shareholder, the Corporation. Moreover, the Subsidiary has negotiated and has made contractual arrangements with its main creditors in order to ensure that the abandonment of the white box assembly business takes place in the best interest of creditors and of the sole shareholder. About Prosys Prosys is a distributor of information technology products having offices in Montreal, Quebec and Ottawa. Prosys maintains its participation in CDMS Inc and Peak Positioning Inc.. Through CDMS, Prosys also offers a wide range of products, including a 24/7 multilingual technical service desk, network operations and monitoring, managed services, IT consulting and a host of value add hardware solutions. The Corporation currently holds 40% of Peak's issued shares and has an option to increase its participation in Peak to 50.1%. The investment in Peak is in the scope of the Corporation's steps to diversify the global offer of services to its current customers and to improve Prosys' positioning for the development of the SMB market. For more information regarding CDMS and Peak, please visit www.cdmsfirst.com and www.peakpositioning.com.
Contact: Contacts:
Prosys Tech Corporation
Mr. Georges Hebert
President and Chief Executive Officer
514-255-3454, extension 270
Source: Prosys Tech Corporation
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