SR Telecom files for CCAA bankruptcy protection amid plans to sell assets

By Caroline Salls

Pittsburgh, Nov. 19 - SR Telecom Inc. has filed for protection under the Companies Creditors Arrangement Act in the Quebec Superior Court to allow the company to sell its assets, according to a SR Telecom news release.

According to the release, the company's board of directors decided on Nov. 8 to attempt to sell the company and/or its assets, and SR Telecom believes that CCAA protection will help better position the company for a sale.

"Despite the CCAA filing, we remain focused on the design, delivery and deployment of our WiMAX solutions and are fully committed to ensuring the satisfaction of our customers around the world," SR Telecom president and chief executive officer Serge Fortin said in the release.

"Today's filing provides a framework in which to optimize and leverage our company's assets for all its stakeholders."

In conjunction with the CCAA filing, the company said it will eliminate 35 positions at its Montreal location and its other offices around the world.

"We are maintaining appropriate staff levels to continue the development of our WiMAX solutions and sustain a strong level of customer support," Fortin said in the release.

"This unfortunate, yet necessary, step will decrease our expenditures during the CCAA period and will reduce our operating cost base in order to facilitate an acquisition."

The company said its management believes that the sale and restructuring process will likely be completed during the first quarter of 2008.

As of Sept. 30, the company had C$95.8 million in assets and C$126.64 million in debt, according to its financial statements for the quarter ended Sept. 30.

SR Telecom is a Montreal-based wireless data equipment company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.