TORONTO, Jan. 12, 2023 /CNW/ - Inscape Corporation ("Inscape" or the "Company") (TSX: INQ) announces today that the Company and its subsidiaries, Inscape Inc. ("INI") and Inscape (New York) Inc. ("Inscape NY" and together with Inscape and INI, "Inscape Group") have initiated proceedings (the "CCAA Proceedings") in the Ontario Superior Court of Justice (Commercial List) (the "Court") under the Companies' Creditors Arrangement Act (the "CCAA").
The Inscape Group's application under the CCAA was heard this morning. Following the hearing, the Court granted an order (the "Initial Order"), which, among various other relief: (i) grants a stay of proceedings in favour of Inscape Group up to and including January 20, 2023 ("Initial Stay Period"); and (ii) appoints Alvarez and Marsal Canada Inc. ("A&M") as court-appointed monitor of Inscape Group (in such capacity, the "Monitor").
After careful consideration of all available alternatives following thorough consultation with legal and financial advisors, the board of Inscape Group determined that it is in the best interests of Inscape Group and all of its stakeholders to seek creditor protection under the CCAA.
Inscape Group initiated the CCAA Proceedings in order to, among other things, obtain a stay of proceedings that will allow Inscape Group to determine the best path forward to effect an orderly and efficient process for the liquidation of the Company's assets. Inscape Group is scheduled to return to the Court for a hearing (the "Comeback Hearing") on January 20, 2023.
During the Initial Stay Period, the Company intends to begin working closely with the Monitor to facilitate the development of an orderly process designed to maximize the value of its assets, for the benefit of its creditors and other stakeholders.
Since 1888, Inscape has been designing products and services that are focused on the future, so businesses can adapt and evolve without investing in their workspaces all over again. Our versatile portfolio includes systems furniture, storage, and walls – all of which are adaptable and built to last. Inscape's wide dealer network, showrooms in the United States and Canada, along with full service and support for all our clients, enable us to stand out from the crowd. We make it simple. We make it smart. We make our clients wonder why they didn't choose us sooner.
This new release contains "forward-looking statements" within the meaning of such statements under the applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "except", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking statements in this release include statements regarding Inscape Group's intention to complete proceedings under the CCAA, the Company's intention to effect a liquidation of the Company's assets; the Company's attention to return to the Court for a hearing on January 20, 2023; and the Company's intention to work closely with the proposed Monitor to develop and implement a process to maximize the value of its assets. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release, including assumptions based on the Company's publicly disclosed information, and the Company's current financial condition. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as expressly required by applicable law.
For more information, visit myinscape.com.
SOURCE INSCAPE Corporation
Inscape Corporation: Contact Jon Szczur, Chief Financial Officer, Inscape Corporation, T (905) 952-4102, [email protected]
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