Cinram International Income Fund announced that the Ontario Court of Justice has approved its sale to Najafi Companies.
For more information visit: www.cinram.com
Unedited press release follows:
Ontario Court of Justice Approves Sale of Cinram to Najafi Companies
TORONTO, July 12, 2012 – Cinram International Income Fund (TSX: CRW.UN) (together with its subsidiaries, “Cinram” or the “Fund”) announced today that the Ontario Court of Justice has approved the sale of substantially all of Cinram’s assets and businesses in the United States, Canada, the United Kingdom, France and Germany (the “Sale Transaction”) to newly formed subsidiaries of Najafi Companies. The Sale Transaction is subject to recognition and approval before the Court in the United States on July 25, 2012.
Cinram also announced that it has received written support from lenders representing 100% of the loans outstanding under Cinram’s first lien credit facilities and lenders representing approximately 98% of the loans outstanding under Cinram’s second lien credit facility.
“This is a significant milestone in our progress towards completion of the Sale Transaction and the strengthening of Cinram’s competitive position,” said Steve Brown, CEO of Cinram.
Under the Sale Transaction announced on June 25, 2012, Najafi will purchase substantially all of the assets used in Cinram’s core businesses for the manufacture of pre-recorded multimedia products and the provision of related logistics services, digital media solutions and outsourced vendor management inventory services in North America and substantially all of the European business.
The Sale Transaction is expected to close in August 2012, subject to satisfaction of closing conditions, although the transfer of portions of the business may occur later in the year.
Cinram International Inc., an indirect, wholly-owned subsidiary of the Fund, is one of the world’s largest providers of pre-recorded multimedia products and related distribution and logistics services. With facilities in North America and Europe, Cinram International Inc. manufactures and distributes pre-recorded DVDs, Blu-ray discs, audio CDs, and CD-ROMs for motion picture studios, music labels, publishers and computer software companies around the world. The Fund’s units are listed on the Toronto Stock Exchange under the symbol CRW.UN. For more information, visit our website at www.cinram.com.