June 27, 2018
TELoIP, a Mississauga, Ontario-based technology company that principally develops and sells products that simplify cloud access through software-defined networks, filed for protection under the CCAA on June 27, listing approximately $36.6MM in liabilities. The company has been significantly impacted by the direction of telecommunications developments in the industry and its competitors' technologic advances. As a result, the company has been unable to achieve profitability and has relied on a succession of debt and capital financings to fund its operating losses while it continues to work towards the profitable commercialization of its technology. These financial difficulties placed the company at a competitive disadvantage and meant it has effectively been operating under increasing financial distress for many years. Accordingly, the company is now facing a liquidity crises and cannot meet obligations as they become due. Under the protection of the CCAA, the company is planning a restructuring and refinancing transaction that will see $36.4MM of secured debentures converted to equity or extinguished. Adarsan Holdings Limited and Dicot Holdings Ltd. are providing $1.5MM in DIP financing to ensure that the company has sufficient funds during the CCAA proceedings to effect the recapitalization. PwC was appointed monitor. Counsel is TGF for the company, and Goldman Sloan Nash & Haber for the monitor.