Frontline Broadband

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.