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Filing of audited financial statements delayed and signature of accommodation agreement

^{Published on 2011-08-01 15:06:28 - Market Wire}
 

MONTREAL, Aug. 1, 2011 /CNW Telbec/ - Prestige Telecom Inc. ("Prestige" or the "Company") (TSXV: PR), a leader in providing engineering, materials furnishing, installation and support services (commonly referred to as EF&I services), as well as technical and aerial services to the Canadian communications and broadcast industries, announced today that the filing of its annual audited financial statements, management's discussion and analysis and related CEO and CFO certifications for the year ended March 31, 2011 (the "2011 Annual Financial Materials"), will be delayed beyond the filing deadline of July 29, 2011. This is due to additional calculation procedures respecting certain impairment charges that need to be performed prior to finalizing the 2011 Annual Financial Materials. The Company is working to complete its 2011 Annual Financial Materials at the earliest possible date and expects to file same no later than September 30, 2011.

The Autorité des marchés financiers (the "AMF") in accordance with its guidelines, has issued a management cease trade order that prohibits, effective immediately, all trading of the securities of the Company by its directors and the Chief Executive Officer and the Chief Financial Officer. The management cease trade order will remain in place until lifted by the AMF upon application by the Company following the filing of the 2011 Annual Financial Materials.

Until Prestige completes the filing of the 2011 Annual Financial Materials, Prestige will comply with the alternative information guidelines set out in National Policy 12-203 - Cease Trade Orders for Continuous Disclosure Defaults for issuers who have failed to comply with a specified continuous disclosure requirement within the times prescribed by applicable securities laws. The guidelines, among other things, require the Company to issue bi-weekly default status reports by way of a news release so long as the 2011 Annual Financial Materials have not been filed.

Accommodation Agreement

On June 11, 2011, the Company announced it had initiated a process to review strategic alternatives available in the context of the review of its capital structure. On July 29, 2011, the Company entered into a temporary accommodation agreement with its lender under its operating credit facility. The aggregate borrowings under the facility are essentially capped at the lesser of $25,000,000 and certain thresholds based on weekly cash flows and borrowing base. The maturity remains unchanged at August 30, 2011, but the new agreement provides the lender with the option to extend such maturity date at its discretion.

Forward-Looking Statements

This press release contains certain forward-looking statements with respect to the Company. Such forward-looking statements are dependent upon a certain number of factors and are subject to risks and uncertainties. Management does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information or future events, except when required by the regulatory authorities.

About Prestige Telecom

Prestige Telecom is a leading provider of network engineering, materials furnishing, installation and support services (commonly referred to as EF&I services) required to construct, operate and maintain wireline, wireless and cable television networks. Prestige assists telecommunications original equipment manufacturers and service providers to engineer, install and upgrade their infrastructures to support enhanced voice, high-speed data and video services. Prestige Telecom also provides technical and aerial services to the Canadian communications and broadcast industries, including tower supply, engineering, site construction, and infrastructure and equipment maintenance.

In Canada, Prestige has over 1,000 professional and technical personnel operating from nineteen (19) service locations in nine (9) provinces. Prestige's head office is located in Baie-D'Urfé (Montréal), Québec.

[ www.prestigetel.com ].

The TSX Venture Exchange has not reviewed the contents of this press release and accepts no responsibility for the adequacy or the accuracy thereof.