TORONTO, April 6, 2020 /CNW/ - The Ad Hoc Committee of
Senior Unsecured Debentureholders (the "Ad Hoc Committee") of
Sherritt International Corporation (TSX: S) (the "Company") today
questioned the accuracy and completeness of the disclosure provided
by the Company in respect of the interim voting results announced
by the Company earlier today.
According to the Company, as at the end of Friday, April 3, 2020, approximately CAD$340 million of Existing Notes have been voted
in respect of the Company's arrangement sought pursuant to Section
192 of the Canada Business Corporations Act as set forth in
the Company's proposed Plan of Arrangement (the "Arrangement"). The
Company also announced, that as at the end of Friday, April 3, 2020, 66.5% of the votes cast in
respect of the Existing Notes have been cast in favour of the
approval of the Arrangement.
Certain members of the Ad Hoc Committee have been advised by
their prime brokers that, even though their votes against the
Arrangement have been submitted to the prime brokers, they have not
yet been finally submitted to the Company in light of the Company's
extension of the consent deadline. The Ad Hoc Committee
remains opposed to the Arrangement and calls upon the Company to
update the market by press release with all information that it or
its agents have received regarding the anticipated results of
voting on the Arrangement prior to the Company's press release
extending the consent deadline. The resolve of the Ad Hoc
Committee against the Arrangement has not changed.
As previously announced, the Ad Hoc Committee believes that the
proposed Arrangement unfairly burdens holders of the Existing Notes
with the consequences of the Company's decision to de-lever its
balance sheet to the benefit of the Company's current shareholders.
The Ad Hoc Committee believes that if holders of the Existing Notes
desire to attempt to negotiate a financially superior outcome to
the Company's proposed Arrangement, they should advise the Company
that they do not support the proposed Arrangement and will not vote
in favour of the proposed Arrangement prior to the Early Consent
Deadline or otherwise.
Any holder of the Existing Notes seeking additional information
in respect of the Ad Hoc Committee and/or the Ad Hoc Committee's
views with respect to the Arrangement is encouraged to contact
Kevin Zych (zychk@bennettjones.com)
or Sean Zweig
(zweigs@bennettjones.com) of Bennett Jones LLP, counsel to the Ad
Hoc Committee.
SOURCE Ad Hoc Committee of Senior Unsecured Debentureholders of
Sherritt International Corporation