The Applicants, operating a network of alternative financial services branches across Canada, sought initial protection under the Companies' Creditors Arrangement Act (CCAA) due to a severe liquidity crisis and regulatory challenges.
The court found the Applicants to be insolvent and granted a stay of proceedings to provide breathing space for restructuring.
The court confirmed its jurisdiction to hear the matter in Ontario, as the Applicants' chief place of business is located there.
However, the court deferred the request for a DIP financing charge to allow other stakeholders time to respond.
