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Mega Brands' shareholders approve recapitalization plan

By Staff -- Gifts and Dec, 3/16/2010 11:31:00 AM

MONTREAL—Mega Brands’ common shareholders and holders of its senior secured debt today approved the toymaker’s recapitalization transaction.

"Today's meetings were important steps towards the completion of the transaction and we thank shareholders and debtholders for voting in favor," said Marc Bertrand, Mega Brands’ president and CEO.

The votes allow the company to proceed with the remaining steps in its effort to reduce approximately $430 million in debt: final court approval in Canada, recognition of the transaction in the U.S., as well as the satisfaction of customary closing conditions. Subject to the satisfaction or waiver of these remaining steps, the corporation expects to complete the transaction on or about March 31, 2010.

Initiated on Jan. 14, 2010, the transaction will reduce Mega Brands’ debt by approximately US$286.6 million and annual interest expenses by approximately US$30 million.

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