Felix Payment Systems Ltd., CCAA

Felix Payment Systems Ltd., a Vancouver, British Columbia-based financial technology company, had its NOI proceedings continued under the CCAA on November 25, listing approximately $22.5 million in liabilities.

Felix has developed a cloud-based payment acceptance product that enables devices equipped with near-field-communication to be used as contactless payment terminals without the need for additional hardware.

The filing was precipitated by a breakdown in the relationship between the existing lenders/equity holders of Felix, such that no party is prepared to inject further financing under the current structure. In addition, the nature of the debt, security, and status of enforcement against Felix’s assets is in dispute and needs to be addressed in a court-supervised process. Given the nature of Felix’s business as an early-stage technology company, there is likely little to no value for stakeholders in a liquidation.

The purpose of the CCAA proceedings is to obtain the required liquidity through DIP financing, run a limited claims process and a SISP.

A&M is the monitor.

Counsel is McCarthy Tétrault for the company, Cassels for the monitor and Osler for the DIP lender.