FormerXBC Inc XEBEQ

The Arnsby Letter

[EndGame11]

Mr Arnsby erroneously states that National Bank has been engaged to assist in carrying out the SISP. That is not the case. It is NBF which has been engaged. This is a different legal entity. He is also wrong when he states that this is the first time that NBF had been engaged by Xebec. NBF had been assisting xebec since summer 2022. Arnsby appears to be mistaken as to the the role of the court in a CCAA context. It is not for the court to question what occurred with regard to employment of executives 5 months before the IFO

[EndGame11]

At present it is highly speculative, if not unlikely, that there would be sufficient proceeds for a compromise to generate funds to satisfy all the secured and unsecured creditors. Hence, no payment of equity claims can be envisaged. The developments flowing from the SISP and any eventual application by the Monitor to approve a claims procedure order will provide greater insight on Xebec's

[EndGame11]

Stephane Archambault's attention, who is a personally a party to the Class Action Application attention will be diverted away from carrying out crucial tasks, as CFO, required of him in carrying out the SISP and providing accurate financial reporting.

[treehill]

I'm not sure if your quote is intended to be taken sarcastically. Supposedly when the company was operating normally, Stephane didn't have class action applications diverting his attention from carrying out crucial tasks. Didn't seem to do the company much good. Maybe diverting his attention will improve things. Their performance to date hasn't exactly generated any faith in their

[EndGame11]

Not a quote, 50.2 of the last court order doc. https://www.insolvencies.deloitte.ca/en-ca/Documents/Xebec/Reasons%20for%20issuing%20amended%20restated%20initial%20order%20%2824-10-2022%29.pdf

[gossamer12]

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