Wire IE (Canada) Inc., a Mississauga, Ontario-based company in the business of building and managing data and telecommunications networks for underserved markets, filed an NOI on July 17, listing approximately $55.0 million in liabilities, including $9.7 million to Crown Capital. Currently, the company is overleveraged and cannot support the existing secured and unsecured debt. In an attempt to maintain its business as a going concern, the company has negotiated a Stalking Horse Agreement with a purchase price of approximately $9.5 million. Farber is the proposal trustee. Counsel is Chaitons for the company, Aird & Berlis for the proposal trustee, and Cassels for Crown Capital.
Frontline Broadband, a Toronto, Ontario-based telecommunications company, was placed in receivership on July 6 on application by Neli Financial, owed approximately $5.9 million. The company has three main lines of business: the provision of managed IT solutions to corporate clients; the provision of residential broadband internet and television services to residential customers across Canada delivered under the name Rally; and wholesale services, including television services for bedside terminals in hospitals. The company has suffered significant losses in recent years. In default of its loan agreements, the company brought in two independent consultants to advise on restructuring alternatives and both concluded that the company was overleveraged. The company engaged in forbearance discussions and exchanged proposals for restructuring the company's business, but no agreement could be reached. Farber was appointed receiver. Counsel is Chaitons for the applicant and Weisz Fell Kour for the company.
Peraso Technologies Inc., a Toronto, Ontario-based semiconductor company specializing in the development of integrated circuits and chipsets for the new generation of wireless technology, obtained protection under the CCAA on June 3, listing approximately $6.7 million in liabilities to Roadmap Capital and $1.0 million to Polar Multi-Strategy Master Fund. The company is currently facing significant liquidity issues due to, among other things, multiple legal proceedings brought against it in Canada and the US by its largest customer, Ubiquiti Inc. As a result of these proceedings, the company was unable to sell its products to customers other than Ubiquiti, potential purchasers were deterred from acquiring the company, and the company could not obtain viable financing. The COVID-19 pandemic has further exacerbated the company's efforts to obtain financing or engage in a strategic transaction as the financial markets have become significantly more risk-averse. The company anticipates that it will run out of cash by late June, at which point it will be forced to cease operations. EY was appointed monitor. Canadian counsel is TGF for the monitor, Stikeman Elliott for the company, and Aird & Berlis for Ubiquiti Networks Canada Inc.
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.
ValidateIT Technologies, a Toronto Ontario-based technology company that provided market research data and deep analytic solutions for leading Canadian corporations, filed for bankruptcy on April 22, listing $1.8 million in liabilities. Ira Smith Trustee & Receiver is the bankruptcy trustee.
neXia Health Technologies (TSXV:NGH-H-X), a Markham, Ontario-based company that is engaged in the development, sale, and support of application software to customers in the healthcare industry in Canada and the US, filed an NOI on March 18. Farber is the proposal trustee.
HealthChain, a Toronto, Ontario-based company that provides software solutions that integrate with existing healthcare management systems and workflows to make outdated technologies and paper-based processes more efficient, filed an NOI on February 28, listing $1.5 million in liabilities. Dodick & Associates is the proposal trustee. Brauti Thorning is counsel to the company.
Star Navigation Systems Group (CSE: SNA), a Brampton, Ontario-based company that develops products and technologies for the aviation industry, filed an NOI on December 11, listing $3.5 million in liabilities. Since earlier this year, a group of dissident shareholders have been attempting to requisition a meeting of shareholders to replace the current board. In each instance, the requisition has been invalid. On December 11, the company's CEO and chairman of the board, Viraf Kapadia, attempted to access the company premises but his key card no longer worked. His access was then physically barred by one of the dissident shareholders. It appears as though the dissident shareholders seized the company in reliance of a meeting of shareholders held at 8 am in which the board was purportedly replaced. In addition to filing the NOI, Kapadia sought an injunction restoring the status quo for the company until the court has had a chance to assess the validity of the latest purported shareholder meeting. Farber is the proposal trustee. Norton Rose Fulbright is counsel for Kapadia.
Trakopolis IoT (TSX-V: TRAK), a Calgary, Alberta-based technology company, filed an NOI on November 7. Founded in 2006, the company delivers business intelligence to organizations that require the location, status and data on corporate assets such as equipment, devices, vehicles and people through a proprietary online platform. The NOI filing followed the company's receipt of a demand letter and notice of intention to enforce security from its secured lender, ESW Holdings, owed approximately US $3.4 million. Alvarez & Marsal is the proposal trustee. Counsel is Osler for the company, Torys for the proposal trustee and MLT Aikins for ESW Holdings.
CO2 Solutions (TSX-V: CST), a Quebec City, Quebec-based technology company, filed an NOI on September 16, listing approximately $12.2 million in liabilities. The company was developing the technology to capture and purify carbon dioxide emitted from fossil fuel power plants, pulp and paper mills and other large emitters of carbon dioxide. The company commissioned its first commercial project at a pulp mill of Resolute Forest Products in Saint-Félicien, Québec in March 2019. The project experienced significant cost overruns though, and in April 2019 the company's board announced that it was creating a special committee to review its strategic options. The strategic review will continue while the company is under creditor protection. EY is the proposal trustee.