RE: hard to understand.... Management wants to increase the DIP from $175,000 to $300,000 to cover operating costs during the CCAA process.
Stay Period extension granted by the court to Jan 18, 2013.
Futura had discussions with 14 interested parties, 4 of which have executed non-disclosure agreements which is a required precondition for access to the data room.
Management is interested in effecting a restructuring transaction with a 3rd party whereby the tax attributes of Futura remain available for future use. "We are open to a transaction with companies in a like business to Futura, or another business." If the entity with who Futura transacts is not a like business, the transaction must ensure that no change in control occurs.
In any event, the structure of the deal would include a transfer of all exisitng assets and liabilities out of Futura coupled with a claims bar order in favour of that entity, to ensure that the liabilities of Futura do not effect the assets or business going forward.
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It does sound complicated and all options are still open, even though management have their preferences. One paper talks about the US loyalty currency business. They maintain that the US business has "great potential", with the 6 US based sales reps who have developed and are now working an extensive sales funnel. Merchant agreements will be those with 15 retail location minimum. US operations currently generates less than $100,000 per year, but has significant growth potential....