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.