FormerXBC Inc XEBEQ

RE:Is it really over?

[AlwaysLong683]

Kipperly wrote: They have applied for creditor protection but is there a chance they will receive financing from another source?  Can anyone comment on this scenario based on their experience with other companies in a similar situation?  Is the company still operating, or are all contracts now gone and customers are looking for other suppliers?  If waiting until Oct 12 is what we need to do I can accept that, but just attempting to start intelligent conversation on how this will unfold.  The comments from the jokers at 5i does not look good, but they have been wrong about everything to do with this stock for the past 2 years.

Also check out the Government of Canada's webpage concerning CCAA.

Excerpt:

 " ......the Court.....issues an order......that typically gives the company 30 days' protection from its creditors.....The stay typically prohibits collection proceedings against the company to enforce existing debts, and the company is prohibited from making most payments to existing creditors in respect of loans or other forms of credit. While the stay is in place, the company can continue to operate, pay its employees and service its customers under Court supervision, with the goal of emerging from CCAA protection as a viable business.

 

The initial order may also provide for provision of "debtor-in-possession" financing, which will allow the company to operate while under CCAA protection, and the priority of this financing over existing debts of the company.

 

The initial order usually allows for payment of wages during the ordinary course of business. With respect to suppliers, the initial order usually prohibits payment of arrears by the company. Suppliers are usually bound by existing contracts with the debtor company and are not permitted to terminate their relationship with the company without Court approval...."