Innovere Medical Inc., CCAA

Innovere Medical Inc., a startup company that, since 2016, has carried on business developing a high-tech solution to improve the comfort of patients during MRI scans, obtained CCAA protection on November 5.

The company owes over $9.6 million to its creditors, including approximately $4.4 million to BDC.

The company has run into manufacturing issues, among other things, that have led to far lower sales volumes than anticipated from the company’s only customer, Siemens Healthcare, causing the company to breach certain payment and other covenants under its loan from BDC.

Innovere took various steps to restructure out of court, including temporarily laying off all but two employees, and conducted a pre-filing sales process, but this did not result in a binding transaction. As a result, the company filed for CCAA protection to allow it to access a DIP facility provided by Hawk Capital — a consultant that assisted with the pre-filing sale process and provided ad hoc emergency funds throughout 2024 — and conduct a SISP.

EY is the monitor.

Counsel is Torys for Innovere, TGF for the monitor, Stikeman Elliott for Hawk Capital, McMillan for BDC and Gowling WLG for ESFC Funding Co.