Sterling Shoes Announces Settlement of Purchase Price Adjustments With Town Shoes
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 30, 2012) - Sterling Shoes Inc. announced today that its wholly-owned subsidiary, Sterling Shoes GP Inc. (general partner of Sterling Shoes Limited Partnership ("Sterling LP")) and Sterling LP have entered into an agreement with Town Shoes Limited ("Town Shoes") regarding the post-closing purchase price adjustments in respect of the previously announced sale transaction whereby Town Shoes acquired a majority of the assets of Sterling LP. The sale transaction was made pursuant to an asset purchase agreement (the "Purchase Agreement") and was completed on May 22, 2012 for purchase price of approximately $17.5 million. Under the terms of the settlement with Town Shoes, Sterling LP has agreed to release the $3 million in escrowed proceeds to Town Shoes in full satisfaction of the post-closing adjustments and certain other liabilities. In consideration for the settlement, Town Shoes has released Sterling LP from any further obligations under the terms of the Purchase Agreement.
As previously announced, pursuant to orders of the Court made under the CCAA, Sterling was granted certain protections under the CCAA. Alvarez & Marsal Canada Inc. has been appointed Monitor pursuant to such orders. All inquiries regarding the CCAA proceedings affecting Sterling should be directed to the Monitor at www.alvarezandmarsal.com/sterling or by contacting Tom Powell of A&M at: (+1) 604-639-0846.
Certain statements in this press release may constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, to be materially different from any results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements contained herein are based on certain assumptions. When used in this press release, such statements often use, but are not limited to, such words as "may", "will", "expect", "should", "believe", "intend", "plan", "anticipate", "potential", and other similar terminology. Although the forward-looking statements contained in this press release are based upon management's reasonable assumptions, Sterling cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release and Sterling assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Sterling Shoes Inc.
Daniel S. Gumprich
Chief Financial Officer