A first DIP drawdown request was scheduled for the week ending Nov 19. However, based on Xebec’s current cash position and the favorable timing variances of the past few weeks, the Petitioners have delayed this drawdown request. The first DIP drawdown is currently scheduled for the week ending December 3, 2022, and the timing of such drawdown will be re-evaluated by the
Petitioners, in consultation with the Monitor, as the situation and cash position evolve.
29. The Company & Monitor continued to have several active discussions and exchanges of information with key customers. Over the past few weeks, discussions have intensified in order to negotiate agreements with certain important clients, and Management has held several meetings in person, namely at the Blainville and Denver facilities, to resolve certain outstanding issues. The purpose of these discussions are mainly aimed at:
a) optimizing working capital on key projects;
b) reassuring the workforce on the ongoing activities of Xebec during the Restructuring Process, due namely to the securing of the DIP Facility;
c) facilitating, in certain cases, the Petitioners’ ability to complete such key contracts, and;
d) in other cases, assessing the viability of key contracts and the opportunity to continue same.