Vlad A. Calina

The applicants, a group of integrated telecommunications companies operating in Canada and the US, sought an initial order under the CCAA.

Facing declining revenues and defaults on secured credit agreements, the companies required protection to implement a pre-filing sales process.

The court granted the initial order, finding the applicants were insolvent debtor companies.

The court also approved an Administration Charge of $1 million, a Directors' and Officers' Charge of $3.1 million, and authorized FTI Consulting Canada Inc. to act as the foreign representative to seek recognition of the proceedings in the United States under Chapter 15 of the Bankruptcy Code.