MISSISSAUGA, ON, Jan. 7 /CNW/ - CPI Plastics Group Limited announced today that it has been unable to withstand the ravages of the current economic crisis and has been unable to gain the support of its secured lender to restructure CPI's financial affairs. After the close of markets today, the lender demanded immediate repayment of all of CPI's credit facilities and notified CPI that the lender intends to enforce its security over all of CPI's assets if repayment cannot be made. CPI understands that the lender will move immediately for the court appointment of an interim receiver over all of CPI's assets. CPI does not intend to object to the appointment.

CPI also announced today that Peter F. Clark resigned this evening as Chief Executive Officer and as a director of CPI after many years of service and commitment to CPI's employees, customers and suppliers. All of CPI's other directors have also resigned or indicated their intention to resign.

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 600 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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