Markham, Ontario-based Legacy Storage Systems International Inc has finally overcome all the legal hurdles and now has a definitive pact to acquire Rexon Inc, currently in Chapter 11 bankruptcy proceedings. The unsecured creditors’ committee for the Rexon/Tecmar Inc subsidiary of Rexon, approved the transaction and under the deal, Legacy would acquire the business of Rexon and its subsidiaries, as far as possible including all shares of a reorganised Rexon. The transaction is still subject to approval of the US Bankruptcy Court for the District of Colorado. If the reorganisation plan isn’t confirmed by the court by March 1, Rexon will seek approval of the court to sell substantially all its assets to Legacy. Legacy will take on Rexon’s debt, pay a cash sum and issue $5m of new shares. Rexon agreed not to solicit other offers.
