MONTRAL, Oct. 21, 2022 /CNW/ - Xebec Adsorption Inc. and certain of its affiliates (collectively, "Xebec" or the "Corporation"), a global provider of sustainable gas solutions, provided an update today following its filing for creditor protection pursuant to the Companies' Creditors Arrangement Act (the "CCAA") on September 29, 2022. The Corporation is pleased to announce it has entered into an interim financing facility (the "DIP Facility") with National Bank of Canada and Export Development Canada. The DIP Facility consists of a revolving multiple draw credit facility of up to a maximum principal amount of $3 million which will be used to fund the Corporation's operations as it continues its restructuring efforts under the CCAA. The DIP Facility was approved yesterday by the Superior Court of Qubec (the "Court") pursuant to an Amended and Restated Initial Order.
Key Employee Retention Plan
The Court also approved yesterday Xebec's key employee retention plan ("KERP"), which permits Xebec to make retention payments to certain key members of Xebec's team deemed essential to ensuring the stability of Xebec's business, enhancing the effectiveness and success of the previously announced ongoing sale and investment solicitation process ("SISP") and supporting the Corporation's restructuring efforts. In addition, the Amended and Restated Initial Order extended the stay of proceedings against Xebec until November 28, 2022, subject to further extension. The stay extension will allow Xebec to continue operating as a going concern as it conducts the SISP and pursues its restructuring.
SISP
In order to participate in the SISP and obtain a copy of the confidential information memorandum and access to a virtual data room, all interested parties must comply with the terms and conditions set forth in the Bidding Procedures Order dated September 29, 2022, a copy of which is available on the website of Deloitte Restructuring Inc. (the "Monitor") at https://www.insolvencies.deloitte.ca/Xebec. Parties interested in participating in the SISP should contact National Bank Financial Inc., Xebec's financial advisor in connection with the SISP, at XebecSISP@bnc.ca or the Monitor at xebec_ccaa@deloitte.ca.
Parties interested in participating in the SISP are reminded that the deadline for submission of non-binding letters of intent is 5:00 p.m. (Eastern Time) on November 11, 2022 and the deadline for submission of binding bids is 5:00 p.m. (Eastern Time) on January 6, 2023.
Xebec will provide further updates as developments warrant. A copy of the Amended and Restated Initial Order and other information regarding the CCAA proceedings are available on the Monitor's website at https://www.insolvencies.deloitte.ca/Xebec. Information regarding CCAA proceedings can also be obtained by calling the Monitor's hotline at 514-393-6722 or by email at xebec_ccaa@deloitte.ca.
Related link:
https://www.xebecinc.com