- Clearford Water Systems Inc. (CLI) has filed a bankruptcy and insolvency act proposal to restructure its affairs
- The process started last month with a notice of intention (NOI) from the company
- All of Clearford Water’s subsidiaries are unaffected by the proposal
- The company’s shares are currently not trading on the TSX Venture Exchange
- Clearford has also announced the resignation of its CFO, Mark McGuire
- Clearford Water Systems Inc. provides unified water management solutions for water infrastructure systems
Clearford Water Systems (CLI) has filed a bankruptcy and insolvency act proposal to restructure its affairs.
Last month the company had already started the process with a notice of intention to make a proposal (NOI) and appointed KSV Restructuring Inc. as the proposal trustee for the proceedings and is helping restructure Clearford Water.
KSV Restructuring can also report to Clearford Water’s creditors assigned to the proposal, help with the proof of claims process, and chair during creditor meetings.
Yesterday Clearford Water stated that it and senior secured creditors began a restructuring and support agreement to outline the terms of the creditor’s support for actions considered in the proposal and intend to fund the company until the end of the restructuring process.
According to Clearford Water, the proposal is meant to meet its obligations to both its unsecured and secured creditors, and to continue to operate.
All of Clearford Water’s subsidiaries are unaffected by the proposal and expect to continue business as usual.
If the company gets approval, then it expects its issued and outstanding common shares to be exchanged for redeemable shares. Trading of its common shares on the TSX Venture Exchange is currently halted with no end in sight.
A meeting with Clearford Water’s creditors is scheduled for June 2, after which KSV Restructuring will send a report to its known creditors.
Clearford has also announced the resignation of its CFO, Mark McGuire.
Clearford Water Systems Inc. provides unified water management solutions for water infrastructure systems.