Business
Allen-Vanguard Provides Update on Recapitalization Transaction
Allen-Vanguard Provides Update on Recapitalization Transaction
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\nOct. 2, 2009 (Canada NewsWire Group) -- OTTAWA, Oct. 2 /CNW Telbec/ -- Allen-Vanguard Corporation (TSX: VRS) (\"Allen-Vanguard\" or the \"Company\") of Ottawa, Canada today provided an update and additional background on its going-private transaction. On September 12, 2009, the Company announced that it had entered into a binding agreement (the \"Transaction Agreement\") with an affiliate of Versa Capital Management, Inc. (\"Versa\"), a Philadelphia-based private equity investment firm, and the Company's senior lenders (the \"Lenders\"), pursuant to which investment affiliates of Versa will become the 100% owner of the Company and Allen-Vanguard will complete a recapitalization to comprehensively resolve its current financial concerns (the \"Transaction\").\"We continue to anticipate a closing later this year,\" confirmed David E. Luxton, President and Chief Executive Officer of Allen-Vanguard. \"We have received positive feedback from a number of our key customers and suppliers about this agreement and the much-needed solution it brings to the serious financial challenges that had been threatening the Company. While we regret that the Transaction will not result in any recovery for our shareholders, we are pleased that customers, suppliers and creditors will be able to continue their normal course dealings with the Company. We hope that some of the information provided here, as well as in my prior letter to shareholders and our FAQs published online, will help shed light on our situation and provide the appropriate context for understanding the necessity of the Transaction to our Company.\"The Transaction will be implemented through a Court approved arrangement. In obtaining Court approval of the Transaction, the Company will demonstrate the fairness and reasonableness of the Transaction to all constituencies whose rights are affected, including shareholders. The Company will publicly disclose the date of the hearing for Court approval of the Transaction once it has been set.The Transaction represents the culmination of a long effort by the Company and its Board to comprehensively solve its financial problems and allow it to return to business preserving as much value as possible under the circumstances. Relevant background to this process has been disclosed by the Company over time, including in the Company's February ...