IntelGenx initiates restructuring proceedings
by CM Staff
The protection afforded by the CCAA is intended to provide the Company with the time and breathing room necessary to implement a strategic review process.
MONTREAL — IntelGenx Technologies Corp., a drug delivery company focused on the development and manufacturing of pharmaceutical films, announced that its Board of Directors has authorized the Company and its subsidiary to bring an application in the Québec Superior Court (Commercial Division) to seek protection from creditors under the Companies’ Creditors Arrangement Act to give the Company sufficient time and breathing room to implement a review of its strategic alternatives.
After a careful review of all available alternatives and following thorough consultation with its legal and financial advisors, the Company’s Board of Directors determined that it was in the best interest of IntelGenx and its stakeholders to file an application for creditor protection under the CCAA. The protection afforded by the CCAA is intended to provide the Company with the time and breathing room necessary to implement a strategic review process under the oversight of the Board of Directors and with the advice of IntelGenx’s professional advisors. In this regard, IntelGenx anticipates that it will seek Court approval to initiate a formal sale and investment solicitation process intended to generate interest in either the business or the assets of IntelGenx, or in a recapitalization of IntelGenx, with the goal of implementing one or more transaction(s). The implementation of one or more transaction(s) may be in addition to, or as an alternative, to a CCAA plan of compromise or arrangement, to maximize return in respect of IntelGenx’s business and assets.
The initial Court order sought is expected to include a stay of creditor claims and exercise of contractual rights with a view to provide the Company some breathing room to implement its strategic review process. It is also expected to authorize interim debtor-in-possession (DIP) financing in order to allow the Company to continue its operations during the restructuring process and implement the necessary restructuring measures.
Furthermore, the Company has announced changes to its board of directors as Clemens Mayr, Sahil Kirpekar and Ryan Barrett have resigned from the Board of Directors of the Company, effective immediately.
