SR Telecom gets CCAA stay order extension

Montreal-based SR Telecom Inc. announced last month that it has obtained protection from creditors through February 29, 2008 via a court order from the Quebec Superior Court.

Under the Companies’ Creditors Arrangement Act (CCAA), the stay of proceedings with provided the fixed wireless transmission equipment supplier with the opportunity to develop a plan of arrangement to propose to creditors for the restructuring of some of the company’s liabilities.

The move comes on the heels of the SR Telecom’s Nov. 8 decision to seek a buyer for the company, which lost $49.3 million during the first nine months of 2007, compared with a loss of $84.4 million during the same period in 2006. SR Telecom owes $46.7 on a credit facility, and an additional $36.1 million on a term loan.

Last month, Mark Tauschek, senior research analyst at Info-Tech Research Group in London, Ont., predicted to ComputerWorld Canada that no one will want to buy the Montreal-based wireless equipment maker, and the company will eventually shut its doors for good.

SR Telecom originally filed for creditor protection under CCAA on Nov. 19.

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.


Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

Cybersecurity in 2024: Priorities and challenges for Canadian organizations 

By Derek Manky As predictions for 2024 point to the continued expansion...

Survey shows generative AI is a top priority for Canadian corporate leaders.

Leaders are devoting significant budget to generative AI for 2024 Canadian corporate...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now