October 31, 2017

Filing Type:

Company Counsel: Fasken Martineau

Trustee: PwC

Trustee Counsel: BLG

Industry:

Province:

BuildDirect, a Vancouver, British Columbia-based technology company that has built and operates an online market platform for home improvement products in Canada and the U.S., filed for protection under the CCAA on October 31. Although the company's operations consistently generated significant revenue, it failed to achieve profitability and currently owes its lenders approximately $75.0MM. The immediate cause of the company's financial difficulties, however, was its failure to complete an equity financing in mid-October. During the proceedings, the company will receive $15.0MM in DIP financing from its interim lenders while it pursues a potential sale. The company's cash flow forecast shows that the company expects to use up to $8.5MM in cash in the next five weeks. PwC was appointed monitor. Alvarez & Marsal is financial advisor to the interim lenders. Counsel is Fasken Martineau for the company and BLG for the monitor.