Reading the below it may appear that the company will continue in some form and not die off. "to implement the proposed restructuring. "Restructuring" and not calling it quits.
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27. SUBSEQUENT EVENTS
On October 16, 2012, the Company commenced proceedings and obtained an order (the "Initial Order") from the Ontario Superior Court of Justice (Commercial List) (the "Court") under the Companies' Creditors Arrangement Act (Canada) (the "CCAA"). The Court granted CCAA protection for an initial period of 30 days, and later extended to January 18, 2013. While under CCAA protection, creditors and others are stayed from enforcing any rights against Futura, giving Futura the opportunity to pursue restructuring alternatives. Futura is now in discussions with potential investors in the Company, as well as potential buyers of certain assets of the Company. Under the Court approved process, potential investors and bidders are to submit their bids by November 30, 2012.
Futura has estimated that it will require $300,000 of additional funding in order to implement the proposed restructuring and as a result, the Court authorized Futura to borrow funds from four individuals, three of who are directors of Futura (collectively, the "Lenders") to provide debtor in possession financing up to $300,000 ("DIP Financing"). The maturity date of the DIP Financing is the earlier of March 31, 2013 and the termination of the stay of proceedings under the CCAA. A fee of 15% of the principal amount shall be earned upon funding and interest shall accrue from the date of investment at the rate of 15% per annum. Principal, the fee and accrued interest shall be payable upon the maturity date. The Lenders were granted a charge over all property, assets and undertaking of Futura in priority to all existing creditors. The DIP Financing is expected to assist Futura in financing its working capital requirements, other general corporate requirements and capital expenditures. Harris & Partners Inc. has been appointed as monitor that will oversee the proceedings under the CCAA (the "Monitor"). As of November 27, 2012, $237,500 of the $300,000 total approved DIP financing has been received.