MicrotecÃ¢â‚¬â„¢s recapitalization plan forges onward
December 23, 2004
ST-AUGUSTIN, Quebec - Microtec Enterprises looks to end its year on a high note of sorts, announcing an agreement with Securex Investments to develop a new alarm entity that combines subscribers from both companies.
The plan calls for 100,000 Microtec alarm subscribers to be grouped with 18,000 alarm subscribers with Securex Master Limited Partnership under a new entity that according to Len Suderman, president of Securex. Although no decision has been made on the name of the new alarm entity as of yet, Suderman said it may be known as the Alarm Co. Interest Trust.
The announcement is another step in MicrotecÃ¢â‚¬â„¢s plans to reorganize the company, which has struggled amidst debt due to numerous acquisitions in the late 1990s. The company entered into protection under CanadaÃ¢â‚¬â„¢s Companies Creditors Arrangement Act - the equivalent to Chapter 11 protection in the United States - in the beginning of November.
The plan put forth to create the new organization still needs to meet court approval, but Suderman said Securex has everything in place it needs to proceed.
Ã¢â‚¬Å“We are proceeding along that path with the companyÃ¢â‚¬â„¢s blessing,Ã¢â‚¬Â he said.
According to Daniel Tardif, communications director at Microtec, this plan is another avenue for Microtec to follow in an effort to settle debts with its creditors.
Ã¢â‚¬Å“Microtec as a company will be keeping its identity,Ã¢â‚¬Â Tardif said, Ã¢â‚¬Å“but new investors could replace the old bank, which assists us with paying back creditors and establishing cash flow.Ã¢â‚¬Â
For more on this story, see the January issue of Security Systems News.