PanGeo Pharma Obtains Stay Order

PanGeo Pharma Inc. and other related corporations obtained an initial stay order on July 10, 2003. Justice Jean Guibault of the Québec Superior Court rendered the decision under the Companies’ Creditors Arrangement Act. Pangeo Pharma sold its natural health brand division to Jamieson Laboratories Ltd. on August 19, and is continuing to pursue its reorganization. At the date of the initial order, the company owed approximately $27 million to National Bank of Canada and $1.5 million to Business Development Bank, the principal secured creditors, and approximately $23 million to its unsecured creditors.

PanGeo Pharma was represented by Gowling Lafleur Henderson LLP, with a team that included Patrick Shea, David Kolesar, Thomas Subic and Lisa Lifshitz in Toronto and Elyse Rosen and Guy Poitras in Montreal. Jamieson Laboratories was represented by Ogilvy Renault, with a team that included Robert Kozlov, Pierre Soulard, Sylvain Rigaud, Michael Weinczok and Rowena Borenstein.

National Bank of Canada was represented by McCarthy Tétrault LLP, with a team that included Mason Poplaw, Alain Tardif and Mary Jeanne Phelan. Ernst & Young Inc., the appointed monitor, was represented by Borden Ladner Gervais LLP, with a team that included Marc Duchesne, Clive Bird, Craig Hill, Magnus Verbrugge, Claudine Millette, Roger Jaipargas and Tanya Kozak.