Nexia files Bankruptcy and Insolvency Act notice Nexia files Bankruptcy and Insolvency Act notice
2020-03-18 14:38 MT - News Release
Mr. Nick Clemenzi reports
NEXIA HEALTH FILES NOTICE OF INTENTION TO MAKE A PROPOSAL UNDER THE BANKRUPTCY AND INSOLVENCY ACT (CANADA)
Nexia Health Technologies Inc. has filed a notice of intention to make a proposal, pursuant to Part III of the Bankruptcy and Insolvency Act (Canada).
Pursuant to the notice, A. Farber & Partners Inc. has been appointed as the proposal trustee in the corporation's proposal proceedings and will assist the corporation in its restructuring efforts. This filing follows the corporation's inability to reach a consensual framework for the restructuring of its obligations to its largest creditor, a former software vendor to the corporation.
Since the corporation's legal dispute update announcement of Oct. 24, 2019, the corporation and the claimant have explored alternative frameworks for the restructuring of the obligations owing to the claimant in order to further explore, among other things, the potential realizable value in the corporations residual assets. The claimant also initiated legal efforts in the Ontario courts to permit it to enforce judgment against the corporation in Ontario, and a court date for such proceedings is expected to occur in late March, 2020.
The filing of the notice has the effect of imposing an automatic 30-day stay of proceedings that will protect the corporation and its assets from the claims of creditors while the corporation continues to pursue its restructuring efforts. This 30-day period may be extended with the authorization of the Ontario Superior Court of Justice.
Management will work closely with the corporation's board of directors and its financial and other advisers, and, with the assistance of the trustee, will initiate a strategic review process in order to maximize the realizable value of the corporation's residual assets.
There can be no assurance that the strategic process will result in the corporation securing any financing or realizing any value in the corporation's residual assets in any transaction or, if a transaction is proposed, that it will be successfully concluded in a timely manner or at all.
Failure by the corporation to achieve its financing and restructuring objectives through an approved proposal will result in the corporation becoming bankrupt.
The corporation will provide updates on this matter when it becomes aware of new material information.
We seek Safe Harbor.
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