DionyMed Brands receives court application seeking to appoint receiver
DionyMed Brands previously announced that GLAS USA, as administrative agent, and GLAS America, as collateral agent, under the Company's credit agreement dated January 16, 2019 provided the Company with notice of default under the Credit Agreement and demand for immediate payment of the amount of $24,810,682.80 plus any additional interest, fees and expenses. GLAS America concurrently provided the Company with a Notice of Intention to Enforce Security under section 244 of the Bankruptcy and Insolvency Act, which would entitle GLAS America to enforce its security over the Company and its assets after the expiry of a 10-day waiting period or earlier if the Company consented to an earlier enforcement. The company announced that GLAS America has served the Company with a petition to the Supreme Court of British Columbia seeking the appointment of a receiver over all of the Company's property and assets. The Receivership Petition is tentatively scheduled to be heard on Tuesday, October 29, 2019. The Company is reviewing and considering the Receivership Petition. It will continue to work co-operatively with its major lender towards reaching a restructuring solution for the business to continue operating as a going concern for the benefit of its stakeholders. At present, there can be no assurance as to what, if any, alternatives might be pursued by the Company and there can be no assurance that the Company will reach any solution with the Company's lender, or as to the terms of any such solution, if achieved.