FormerXBC Inc XEBEQ

Xebec Obtains Interim Financing and Provides Update...

[midard]

Xebec Obtains Interim Financing and Provides Update on its CCAA Process

• Xebec entered into an $3 million interim financing (DIP) facility with National Bank of Canada and Export Development Canada

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 [e-mail] or the Monitor at [e-mail].

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 [e-mail].

Related link:
https://www.xebecinc.com

[sumpineh]

Thanks for the post,As always, no pomp just information. Hopefully something positive. 

[ZouZS3]

That's it ?????

[Possibleidiot01]

I think ZouZS3 has a point with " That's it ????? If $3 million saves the company, like why is this happening? Another way of looking at  this is just fire supressant for a very short time while somebody buys the burning house .

[tamaracktop]

I find it odd that the ones supposedly extending "interim financing" are the very same ones that forced Xebec to seek protection in the first place. I find this whole debacle very very strange.

[filoux004]

Hey TT may I direct you to youTube 'Arte Johnson, very interesting '. Peace

[filoux004]

For myself I find it 'conflictual' but thanks TT for than in depth analysis. I hear Mr Arnsby is trying to reach you ... something to do with the lady with the big position. Peace

[tamaracktop]

If they're willing to extend even just another 3 million, it implies they're comfortable with Xebec's asset coverage or overall capacity to repay does it not? The National Bank isn't in the business of throwing money out the window... Good money after bad...I find this whole scenario both very confusing and more than a little disturbing.

[tony08]

[/quote Marcello is starting to influence me, some would say,(lol),  but the last time management discussed about it, they were supposed to start receiving revenue this time of year. Three million dollars is not a big sum but maybe they don't need more to continue operating if already planned income is added to it.

[AlwaysLong683]

TT, please read my post dated Oct. 22 at 6:21pm re. why National Bank / Other creditors may have loaned XBC the $3M.  Here's how things may have played out: 1) XBC wanted one or more creditors to agree to relax debt covenants because they would not be able to meet their debt obligations. 2) One or more of those creditors looked at the state of XBC and said no, perhaps because they had

[canasol44]

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