MISSISSAUGA, ON, Nov. 19 /CNW/ - CPI Plastics Group Limited ("CPI")
announced today that it was not in compliance with the financial covenants
governing its lending agreements as at September 30, 2008. As previously
announced, the Company has formed a special committee of the Board of
Directors and commenced a financial restructuring initiative, under which the
Company is in discussion with its lenders with a view to restructuring its
debt and correspondingly amend covenants.
In another unrelated development, CPI announced today that the filing of
its financial statements for the third quarter ended September 30, 2008 and
related management's discussion and analysis ("MD&A") will be delayed.
With its listing on TSX Venture Exchange on November 10, 2008, the
Company incorrectly assumed it must comply with the regulations of the TSX
Venture Exchange, which requires reporting issuers to file quarterly financial
statements, MD&A and Certifications within sixty days following the quarter
end, or in the case of the Company, by November 28, 2008. On November 18,
2008, the Company was informed by the Ontario Securities Commission ("OSC")
that as it was still listed on the Toronto Stock Exchange as of its third
quarter end on September 30, 2008, it was required to report within forty five
days following its quarter end or by November 14, 2008. The Company is in the
process of completing its Q3 Financial Statements, MD&A and Certifications and
anticipates these being finalized and filed by no later than November 28,
2008.
As a result of this delay, the Company has requested that the Ontario
Securities Commission and other applicable Canadian securities regulators to
issue a temporary management cease-trade order prohibiting the company's
directors, officers and other insiders from trading in the securities of the
Company until the Company's third quarter financial statements and MD&A are
publicly released and filed. The issuance of the management cease-trade order
does not affect the ability of persons who are not directors, officers or
insiders of the Company to trade in the Company's securities. Pending the
filing of the third quarter financial statements and MD&A, the Company will
comply with the alternative information guidelines of the Canadian Securities
Administrators.
CPI Plastics Group Ltd. is a Canadian-based plastics processor and a
recognized international leader in thermoplastics profile design, engineering,
processing and value added manufacturing. CPI is comprised of three key
divisions. CPI's Outdoor Living Products Group manufactures and markets Eon(R)
Decking and Fencing Systems, as well as high value-added cladding and
accessory components to the outdoor hot tub industry. CPI's Film Products
Group manufactures and markets the Rack Sack(R) household refuse management
system and a wide range of branded and private label household and industrial
refuse bags. CPI's Custom Products Group supplies leading OEM manufacturers
with custom profile solutions to enhance quality, cost effectiveness and
process ability. Based in Mississauga, Ontario and Pleasant Prairie,
Wisconsin, CPI's dedicated team of over 400 employees currently manufactures
out of six plants occupying 530,000 square feet of manufacturing space and
housing over 135 extruders. To learn more about CPI, visit our website at
www.cpiplastics.com.
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