September 29, 2022
Xebec Adsorption Inc. and various subsidiaries (collectively, the "Xebec Group"), a Montréal, Québec-based global provider of sustainable gas solutions used in energy, mobility and industry applications, obtained CCAA protection on September 29. The Xebec Group has incurred material operating losses since 2020. Its financial difficulties were attributable to a number of factors, including its inability to raise additional capital given the state of capital markets, supply chain constraints, impact of the COVID-19 pandemic, the geopolitical factors and increasing selling, general and administrative expenses resulting from the number of acquisitions completed over the last two years and the completion costs of legacy renewable natural gas contracts and the costs associated with discontinuing such product line. As part of the initial order, the Court declared Montreal, Quebec to be the Xebec Group's COMI for the purpose of recognition proceedings under Chapter 15 of the US Bankruptcy Code. Deloitte was appointed Monitor. Counsel is Osler for the Xebec Group, McCarthy's for the Monitor, BLG for National Bank and Norton Rose for EDC. PwC is Financial Advisor for National Bank.
By Dina Milivojevic