Microtec finds more time
February 17, 2005
ST-AUGUSTIN, Quebec - In early February, Microtec Enterprises, a full-service security firm, obtained another extension of its operating time under CanadaÃ¢â‚¬â„¢s CompaniesÃ¢â‚¬â„¢ Creditors Arrangement Act - similar to a Chapter 11 filing in the United States - until March 11.
The company has been operating under court protection since the initial order was approved on Nov. 11, 2004. Microtec had made numerous attempts to address the needs to its creditors, which provided the company with five extensions before it filed the CCAA request. But one of the companyÃ¢â‚¬â„¢s creditors, GE Capital, refused MicrotecÃ¢â‚¬â„¢s recapitalization plans, forcing it to file for protection.
The updated ruling allows Microtec to continue to pursue its restructuring efforts with Securex Investments, a financial provider to the alarm industry.Ã‚Â The two parties signed an agreement to develop a new alarm company that would combine subscribers from both companies.