The listed company Xebec Adsorption, supplier of solutions to renewable gas producers, is sheltering itself from its creditors.
Posted at 12:26 p.m.
In a press release, it announced Thursday morning that it is today filing an application for an initial order with the Superior Court under the Companies’ Creditors Arrangement Act (the “CCAA”) and will seek recognition of order in the United States under Chapter 15 of the Bankruptcy Code.
The objective is to suspend the recourses of the creditors to try to restore the company financially while soliciting investments or buyers for its assets, a process which must in time and place be approved by the Court.
Xebec is advised by Osler, Hoskin & Harcourt and McDonald Hopkins, and National Bank Financial.
Established in Quebec, Xebec has 9 manufacturing plants, 17 clean technology service centers and 5 sales offices on 4 continents.
More specifically, Xebec specializes in carbon capture as well as the production of hydrogen, renewable natural gas, oxygen and nitrogen. In 2021, its annual revenue was 126 million.
As recently as March, Xebec was sparking investor excitement after signing a memorandum of understanding with a US customer surrounding a potential order worth more than US$100 million. The company then spoke of almost tripling its revenues in two years.
In terms of profitability, it was less glorious. It posted weak profitability quarter after quarter, financial analysts blamed it.
