Cygnal reports loss of $2 million

Cygnal Technologies Corp., which is undergoing a court-supervised restructuring, announced Thursday it lost $2 million during the quarter ending Sept. 30, on top of a loss of $1.1 million during the previous quarter. Revenues during the quarter ending Sept. 30 were $26.4 million, down from $31.6 million during the same period in 2006.

Last month, the Markham, Ont.-based networking integrator was granted protection by creditors from the Ontario Supreme Court of Justice under the Companies Creditors’ Arrangement Act.

It requested court protection, and $7.4 million in financing from lender Laurus Master Fund Ltd., because it faced a “senior liquidity issue” due in part to loans borrowed at a high interest rate. Cygnal already owes Laurus $2 million.

Under a court order, Prince Waterhouse Coopers Inc. has been appointed as a monitor and Cygnal is required to submit a restructuring plan for its creditors’ approval.

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