iMarketing Solutions Group Inc. Commences Formal Restructuring Proceeding and Files for Protection Under the Companies' Creditors Arrangement Act

TORONTO, April 12, 2013 /CNW/ - iMarketing Solutions Group Inc. (CNSX: IMR) (the "Company"), a North American integrated marketing services provider of direct marketing solutions for not-for-profit organizations, political organizations and professional associations, announced today that it has commenced  restructuring proceedings by filing for and being granted protection under the Companies' Creditors Arrangement Act ("CCAA").  The Company's Canadian and U.S. subsidiaries have also been granted protection under the Initial Order.  The Company has applied to have the Initial Order and the CCAA proceedings recognized in the United States pursuant to Chapter 15 of Title 11 to the United States Code (the "Recognition Order"). The effect of the Recognition Order, if granted, will be that the Initial Order will be recognized and enforced in the U.S. and the assets of the Company and its subsidiaries will be subject to the protection granted under the Initial Order and the CCAA proceedings in Canada.

Pursuant to the Initial Order, Duff & Phelps Canada Restructuring Inc. was appointed as the Company's CCAA monitor (the "Monitor").  The Monitor's role is to work with the Company to assist it to complete its restructuring process and to oversee certain restructuring activities.

During the restructuring period, the Company intends to continue to operate in the normal course.  In order to do so, the Company has arranged a Court-approved loan facility to fund the business.

The principal purpose of these restructuring proceedings is to create a stabilized environment in order to carry out a process to solicit investors, strategic partners, plan sponsors or purchasers for the Company's business and assets to preserve its going-concern value.

During the CCAA proceedings, Upkar Arora will be retained as the Company's Chief Restructuring Officer.  Mr. Arora is a seasoned professional who has experience working with companies in these situations.

The Company's normal day-to-day operations and each of its core businesses are expected to continue without interruption.

The Company is confident that the protection resulting from the CCAA filing will provide the Company with the stability it requires in order to advance and efficiently execute a restructuring plan that is in the best interests of its customers, creditors, employees and other stakeholders.

Forward-Looking Information

This news release includes certain forward-looking information that is based upon current expectations, which involve, among other things, risks and uncertainties associated with the Company's business and the restructuring process. Forward-looking information in this news release includes, among others, statements with respect to the timing and continuance of CCAA protection, the restructuring process and potential opportunities for the restructured business. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking information, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", "will", "may", "should", "could", and similar expressions to the extent they relate to the Company or its management. The forward looking information is not historical fact, but reflects the Company's current expectations regarding future results or events. Forward-looking information is subject to a number of risks, uncertainties and assumptions that may cause the Company's actual results to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, the Company's revenue streams being consistent with historical patterns, adjusted to reflect the Company's recent cost-cutting initiatives and changes to its strategic direction; customers continue to pay the Company pursuant to contract terms for ongoing project work performed by the Company, credit and market risks, the uncertainty involved in court proceedings; changes to licensing and regulations affecting the Company's activities; uncertainties relating to the availability and costs of financing needed in the future; the ongoing operation of the Company's business and other factors, including without limitation, those listed in the Company's MD&A for the three months and nine months ended September 30, 2012 under the heading "Risks and Uncertainties".

SOURCE: iMarketing Solutions Group Inc.

Upkar Arora
Chief Restructuring Officer