Shermag Inc. Obtains Extension of CCAA Stay Order

Furniture World News

Shermag Inc. announced that it has obtained an order from the Québec Superior Court extending to December 10, 2008 the period of the Court-ordered stay of proceedings against Shermag and its subsidiaries, Jaymar Furniture Corp., Scierie Montauban Inc., Mégabois (1989) Inc., Shermag Corporation and Jaymar Sale Corporation, under the Companies' Creditors Arrangement Act ("CCAA"). The purpose of the stay of proceedings is to provide the Company with an opportunity to develop and file a plan of arrangement to propose to its creditors and to hold a creditors' meeting. In its order, the Court also approved the liquidation of surplus inventory, surplus equipment as well as the sale of the head office building. The Company has been operating under the protection of the CCAA since May 5, 2008. Shermag Inc., headquartered in Sherbrooke, Québec, designs, produces, markets and distributes high-quality residential furniture. The Company employs approximately 720 people and is a manufacturer and importer with its own manufacturing operations and global sourcing division.