ST-AUGUSTIN-DE-DESMAURES, Que. (CP) - Home security company Microtec Enterprises Inc. plans to restructure its finances under bankruptcy protection from creditors.
The Quebec company said Thursday it had filed a motion with Quebec Superior Court requesting an order for protection under the Companies' Creditors Arrangement Act.
"This filing is necessary because the bankers of company have refused to extend the forbearance that was in place until recently and in order to allow the company to complete a recapitalization plan,'' Microtec said in a release.
"The purpose of this filing is to provide the company with additional time to finalize and complete the recapitalization plan already being negotiated, facilitate the proposal of an arrangement, including with its lenders, and obtain adequate protection for directors and officers of the company by court order.''
Microtec said the bankruptcy protection filing does not affect the company's operations and no layoffs are planned.
Microtec sells a range of security and home automation services to residential and commercial customers. The company, which employed 182 people at the end of 2003, generated revenues of $30.8 million but lost $422,000 last year.