Prestige Telecom Inc. (TSX-V: PR) has completed the previously announced sale of substantially all of its assets to a company controlled by Thornhill Investments Inc.
Thornhill has acquired from Raymond Chabot Inc., the court appointed receiver, substantially all the assets of Prestige Telecom, including all contracts of the business, equipment, accounts receivable, customer lists and intellectual property.
In consideration, Thornhill paid $28 million in cash and assumed liabilities under leasing and business contracts and employment liabilities.
Following the closing of the transaction, Netricom Inc. has been formed from the acquired assets.
No proceeds from the sale are expected to be distributed to shareholders and creditors, other than Canadian Imperial Bank of Commerce (CIBC), Prestige’s main secured creditor.
As of June 30, 2011, Prestige Telecom reported bank indebtedness of $25.14 million and current portion of long term debt of $15.44 million.
In July 2011, Prestige Telecom retained Samson Bélair/Deloitte & Touche as financial advisor to assist its announced strategic review of its capital structure.
As of August 23, 2010, Radian Communication Services Corporation, a corporation controlled by Onex Corporation (TSX: OCX), and Novare Holding Inc. were largest shareholders of Prestige Telecom, collectively controlling 36% of the outstanding shares.
