September 14, 2018
Intelligent Mechatronic Systems ("IMS") and Ridetones, Waterloo, Ontario-based technology companies in the business of developing and delivering advanced end-to-end mobile in-car solutions aimed at enhancing driver behaviour, were placed in receivership on September 14 on application by B.E.S.T Active 365 Fund LP et al., owed approximately $16.4MM by IMS and $12.1MM by Ridetones. The companies, which have been in default since March 2017, remain in default at present. Since these defaults arose, the companies have engaged in company-led efforts to refinance their indebtedness and/or sell its shares or assets. All refinancing and sales efforts have failed, however, to lead to any transaction which would have allowed the companies to repay their indebtedness. In early May 2018, in response to their financial difficulties, the companies' engaged Iberis Advisors, an outside investment bank, to administer a sale and investor solicitation process. This effort, too, proved unsuccessful. The companies are currently facing urgent and pressing liquidity issues, and their lenders are no longer willing to support them. PwC was appointed receiver. Counsel is Bennett Jones for the applicants, Norton Rose Fulbright for the companies and BLG for the receiver.