Sensio Technologies Files for Bankruptcy and Seeks Court Approval for Partial Sale of Assets

Sensio Technologies Inc. (CVE:SIO) has filed a notice of intention to make a proposal under Canada’s Bankruptcy and Insolvency Act.
According to the press release:

Sensio also announced that it entered into a binding letter of intent with Wi-Lan Inc. and an affiliate providing for the sale to Wi-LAN of the patents and patent applications underlying the existing exclusive licence agreement among the parties. The sale to Wi-LAN is subject to approval of the Superior Court of Quebec and is expected to close in January, 2016.
Sensio also announced that it obtained a $100,000 secured bridge loan from its president and chief executive officer which is repayable upon the receipt of the proceeds from the sale to Wi-LAN. The bridge loan will be secured by all of the assets of the company and will bear an interest rate of 18 per cent per annum. The secured bridge loan was approved by all of the disinterested directors of the company and is exempt from the requirement to obtain minority shareholder approval under the related party transaction rules of applicable securities legislation.
The transactions follow a review of Sensio’s strategic alternatives by a committee of its board of directors formed of all non-management directors and advised by Deloitte Restructuring Inc. It was determined by the board of directors, at the recommendation of the independent committee, that, as a result of the company’s current financial situation, seeking creditor protection would be in the best interests of the company and all of its stakeholders. While under protection, the company will continue with its efforts to pursue strategic alternatives, including pursuing the sale of its remaining assets. The net proceeds from the sale to Wi-LAN will be directed toward that strategic process. There can be no assurance that the strategic process will result in the consummation of any specific transaction or agreement. The company does not plan to make future comments about the status of this strategic process unless there are material developments.

Click here to read the full press release.