PharmEng to make proposal under bankruptcy act
PharmEng has filed a notice of intent (NOI) to make a proposal under the Canadian Bankruptcy and Insolvency Act in an attempt to “regain the company's financial footing”.
PharmEng has initiated salary cuts and executive lay-offs in recent days in an attempt to resolve its cash flow difficulties but has had to take further action.
The company defaulted on loans amounting to $7m in the past week and has an additional $14m debt outstanding from earlier in the year. One of the company’s creditors, BHC Interim Funding II, has provided notice that it will exercise its voting power that was gained in a stock pledge.
PharmEng has stated that “day-to-day operations will continue uninterrupted” and that it is of “paramount importance” that it maintains service levels and keeps clients.
