IPL Plastics Inc. provides update regarding the Impact of Covid-19 on its Operations and on Timing of Annual General Meeting

MONTREAL, April 06, 2020 (GLOBE NEWSWIRE) -- IPL Plastics Inc. ("IPLP" or the "Company") (TSX: IPLP) provides an update regarding the impact of Covid-19 on its operations and on the Company's upcoming Annual General and Special Meeting of shareholders (the "AGM") currently scheduled for May 14, 2020.

Impact of Covid-19 on Operations

The assessment of the impact of Covid-19 continues to evolve as new facts and circumstances emerge. The health and safety of our employees is of the utmost importance and we have moved rapidly to put appropriate and responsive measures in place to protect their safety and well-being. The business has also had to respond rapidly to comply with many new governmental regulations in each of the jurisdictions in which we operate and in adjusting, adopting and coordinating ways of working as we restructure our business to ensure the health and safety of our employees as we  continue to deliver quality and safe products to our customers through this crisis.

We have implemented a number of contingency planning measures as we continue to keep all 14 of our manufacturing facilities operational. In jurisdictions where it is applicable, our plants are considered to manufacture essential products for essential businesses. While it is too early to assess the overall impact of Covid-19 on our business as no reliable determinable trends are yet evident or apparent, we believe that the overall impact of Covid-19 and the associated containment measures announced will reduce overall demand for our products. On the one hand, we have experienced increased demand for some of our products such as food packaging containers, while on the other hand, we have seen a slow-down in demand for certain of our other products.

We have taken a number of early actions to ensure we maintain a strong liquidity position, including restricting capital expenditures and reducing staffing levels and other costs in areas of the business where demand for certain of our products has reduced. As we continue to evaluate the impact of Covid-19, and as there is no certainty as to how long the impact of Covid-19 and associated measures will continue in each of the jurisdictions in which we operate, we feel it prudent to withdraw all previous guidance given these uncertainties.   

At March 31, 2020 the Company was in a strong liquidity position. We had total available liquidity balances of $ 240.4 million of which $ 87.5 million was in freely available cash balances and $152.9 million was in undrawn committed senior debt facilities.

AGM

In light of the ongoing public health concerns related to the Covid-19 outbreak and in order to adhere to the measures imposed by the government authorities on group gatherings and social distancing, the Company has decided to postpone its AGM to June 23, 2020 and to offer a  live webcasting of the meeting in addition to in-person attendance at the meeting. The Company is asking shareholders, in considering whether to attend the meeting in person, to follow, among other things, the instructions of the Public Health Agency of Canada and any applicable additional provincial and local instructions.

Furthermore, in light of the rapidly evolving situation of Covid-19, the Company may have to limit admittance at the meeting and, as such, only admit registered shareholders and validly appointed proxyholders at the meeting location. The Company may not be able to admit any non-registered shareholders (other than non-registered shareholders which would have validly appointed themselves as proxyholders), or to admit any guests, observers, representatives of the media or other persons. Moreover, the Company may be required to refuse to all shareholders entry to the meeting location if deemed necessary or appropriate in accordance with any recommendation, guideline, decree or order of any applicable governmental authority. The Company continues to monitor the situation and will keep the shareholders informed as appropriate. Given these exceptional circumstances, the Company is urging shareholders to vote on the matters before the meeting by proxy, and to attend the meeting via the live webcast only. The Company believes that the precautionary measures taken are prudent to protect the well-being of all stakeholders. The Company may take additional measures in relation to the meeting to respond to further changes in relation to the Covid-19 situation.

Forward Looking Statements

This press release may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements include all matters that are not historical facts. Specifically, forward-looking statements in this press release include, but are not limited to, expectations of the Company with respect to the outbreak of Covid-19 and its possible impact on the Company's revenues and Adjusted EBITDA. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions.

Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Such information reflects IPLP's then current views with respect to future events based on certain material facts and assumptions and are subject to certain risks and uncertainties.

Forward-looking information is based on certain key expectations, opinions, assumptions and estimates made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate and reasonable in the circumstances. Although IPLP believes that the expectations, opinions, assumptions and estimates on which such forward-looking information is based are reasonable, such forward-looking information should not be unduly relied upon since there can be no assurance that such expectations, opinions, assumptions and estimates will prove to be correct.

All of the forward-looking information contained in this press release are qualified by the foregoing cautionary statements and there can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this press release is provided as of the date of this press release and the Company does not undertake to update or amend any forward-looking information contained herein whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

About IPLP
IPLP is a leading sustainable packaging solutions provider primarily in the food, consumer, agricultural, logistics and environmental end-markets operating in Canada, the U.S, the U.K., Ireland, Belgium, China and Mexico. IPLP employs approximately 2,100 people and has corporate offices in Montreal and Dublin. For more information, please visit the Company's website at www.iplglobal.com.

Investor Enquiries

Contact
Paul Meade, Head of investor relations, +353 87 0655368