FormerXBC Inc XEBEQ

CCAA

[LyChauncey]

Q: Is a company that has filed for protection from its creditors under the Companies' Creditor Arrangement Act ("CCAA") in receivership or bankruptcy?

 

A: In a word, no. A company (also referred to as the "Debtor") that has filed under the CCAA for protection from its creditors is not in receivership or bankruptcy. Rather, it has filed under the CCAA in order to devise a plan of restructuring and compromise for its creditors that avoids the company going into receivership or bankruptcy, with a view to keeping the Debtor company operating, increasing the amount that may ultimately be paid to creditors and preserving the Debtor's employees' jobs.

[Gann999]

While true it's basically 1 step away from bankruptcy or receivership hopefully they come to an agreement that is favorable to all parties including shareholders.

[sorrenson]

The first thing that happens is that the shares are voided shareholders get nothing as they're unsecured they're owners of the company and unsecured just look at GM or Air Canada and ask how the shareholders did

[Gann999]

shareholders can also be included as a creditor just saying and their debt isn't so onerous that there would be nothing left at the end but we shall see how this plays out not looking good for common shareholders though.

[babedinkleman]

This post has been removed in accordance with Community Policy

[ferret_ca]

this mess is at least 90% Kurt's doing, I don't like this mgmt (heck one is from bomber, lol)but they inherited one heck of a puzzle from Kurt. supply chain inflation higher rates etc etc were not the fault of this mgt or anyone in mgmt.  they would've needed probably at least another year to turn this pig around if , and that's if they could possibly do it, you should've

[Gann999]

Would have to agree with you unfortunately we are a mere inconvenience to them am sure xebec will carry on and they will run it further into the ground or make it a powerhouse and we will be shut out.

[babedinkleman]

This post has been removed in accordance with Community Policy

[LyChauncey]

In a lot of situation you are right. In this situation, Xebec got caught by a 25M due tomorrow from National Bank of Canada. While it does seem they have about 30M cash to cover this payment but don't forget they are currently executing a huge contract so the working capital is very tight. Guess the reason they go into CCAA today is to buy more time to convert more of the 44M account