GuestLogix gets court protection from creditors, trading in its stock halted
Advertisement
Read this article for free:
or
Already have an account? Log in here »
To continue reading, please subscribe:
Monthly Digital Subscription
$1 per week for 24 weeks*
- Enjoy unlimited reading on winnipegfreepress.com
- Read the E-Edition, our digital replica newspaper
- Access News Break, our award-winning app
- Play interactive puzzles
*Billed as $4.00 plus GST every four weeks. After 24 weeks, price increases to the regular rate of $19.00 plus GST every four weeks. Offer available to new and qualified returning subscribers only. Cancel any time.
Monthly Digital Subscription
$4.75/week*
- Enjoy unlimited reading on winnipegfreepress.com
- Read the E-Edition, our digital replica newspaper
- Access News Break, our award-winning app
- Play interactive puzzles
*Billed as $19 plus GST every four weeks. Cancel any time.
To continue reading, please subscribe:
Add Free Press access to your Brandon Sun subscription for only an additional
$1 for the first 4 weeks*
*Your next subscription payment will increase by $1.00 and you will be charged $16.99 plus GST for four weeks. After four weeks, your payment will increase to $23.99 plus GST every four weeks.
Read unlimited articles for free today:
or
Already have an account? Log in here »
Hey there, time traveller!
This article was published 09/02/2016 (3539 days ago), so information in it may no longer be current.
TORONTO – GuestLogix Inc. (TSX:GXI) has obtained court protection from creditors, allowing the payment technology company to continuing operating while it works to resolve its financial problems.
GuestLogix’s core business is providing airlines and passenger rail services with technology for processing onboard customer purchases.
The Toronto-based company had announced layoffs in October as it worked to cut operating costs and followed that in November by hiring Canaccord Genuity to assist with a strategic review.
On Dec. 16, GuestLogix’s board announced a formal review of accounting practices after a preliminary review suggested some contracts hadn’t followed proper revenue recognition policies.
The company’s main lenders also agreed in December to forbear from formally demanding repayments until Dec. 18, a deadline that was later extended.
On Tuesday, GuestLogix disclosed that it had obtained protection under the Companies’ Creditors Arrangement Act — which prevents lenders from seizing assets without court approval — after its senior lender filed a formal notice of default on Feb. 8.
“The company’s management will remain responsible for the day-to-day operations of the company,” GuestLogix said.
Under the CCAA proceedings, GuestLogix expects to continue operations uninterrupted and the company will meet its obligations to employees, key suppliers of goods and services and customers on an ongoing basis.
GuestLogix said its Dublin, Ireland,-based subsidiary, OpenJaw Technologies Ltd., isn’t covered by the CCAA proceedings.
Trading of GuestLogix shares (TSX:GXI) has been suspended pending a review by the Toronto Stock Exchange. They last traded Monday at 9.5 cents. Their 52-week high of $1.03 was hit nearly a year ago.