September 30, 2020
Creditloans Canada Financing Inc. (o/a "Progressa") and Creditloans Canada Capital Inc. (“Capital Inc.”) obtained protection under the CCAA on September 30, listing approximately $67.0 million in liabilities and $47.0 million in assets. Progressa is a Vancouver, British Columbia-based company primarily engaged in servicing consumer loans through an online medium to individuals unable to secure loans from traditional sources. Capital Inc. — which has no active business or operations — was incorporated for the sole purpose of issuing bonds, the proceeds of which are advanced to Progressa. As a result of the COVID-19 pandemic, Progressa experienced a significant reduction in originations of new loans that severely impacted its cash flow. The companies have sought a stay of proceedings under the CCAA in order to obtain interim financing and continue lending operations while working with its stakeholders to formulate a restructuring plan that will maximize asset value. During these CCAA proceedings, the companies will be receiving up to $2.5 million in DIP financing. BDO was appointed monitor. Counsel is McMillan for the companies, Fasken for the monitor, and Blakes for the proposed DIP lender.