May 19, 2020
Tribalscale Inc., a Toronto, Ontario-based technology company that provides customized enterprise software services to Canadian and American companies, filed an NOI on May 19, listing approximately $5.8 million in liabilities, including $2.5 million to 1924191 Ontario Inc. The company experienced early success when it started its business in 2015. However, it attributes its current financial difficulties primarily to a slowdown in receipt of new contracts in 2019 and a delay in collections from certain existing customers due to disputes, coupled with high operating and payroll expenses. The COVID-19 pandemic further reduced the spending power of the company's existing and prospective customers. Prior to filing the NOI, the company had made certain operational changes as part of a restructuring to address its liquidity challenges., including reducing its employee headcount. In addition, between the summer of 2019 and spring of 2020, the company was in discussions with various potential purchasers which culminated in a potential deal to sell its going concern business. Due to COVID-19, however, the potential purchaser opted not to close the transaction. MNP is the proposal trustee. Counsel is Weisz Fell Kour for the company, BLG for the proposal trustee, and GSNH for 192 Ontario.