On December 30, 2002, KPMG Inc., in its capacity as Trustee in Bankruptcy of the Corporation filed a Proposal with the Official Receiver, which was subsequently amended by an Amended Proposal filed on January 22, 2003 (the “Amended Proposal”). A meeting of creditors will be held on Tuesday, February 4, 2003 at 10 a.m. at the offices of KPMG, 199 Bay Street, Suite 3300, Toronto, Ontario for the purpose of voting on the Amended Proposal.
The Amended Proposal may provide creditors with a significant increase in recovery on their claims verses that currently available through the bankruptcy.
On April 30, 2002, Consumers Packaging filed an assignment in bankruptcy, under the Bankruptcy and Insolvency Act ("BIA"). The bankruptcy will provide the appropriate form for distribution of the remaining proceeds of sale among Consumers Packaging's remaining creditors.
On May 23, 2001 Consumers Packaging obtained an Order from the Ontario Superior Court under the Companies' Creditors Arrangement Act ("CCAA"). Since May 23, 2001, Consumers Packaging, under the supervision of its Monitor and with the approval of the Court, conducted an organized sales program which has resulted in substantially all of its assets being sold and claims of its secured creditors being settled