Toronto — Adaltis Inc., a Canadian medical devices maker, said Friday it was granted protection from its creditors by a Quebec court while it works on a reorganization plan.
Montreal-based Adaltis, which warned this week that it was running out of money, said the Quebec Superior Court approved its application under the Companies' Creditors Arrangement Act (Canada).
The court also approved debtor-in-possession financing of up to $3-million through Victoria Square Ventures Inc. to fund operations during the reorganization process.
“Obviously we have liquidity issues. We are unable to continue on in our current format,” David Gardner, executive vice-president and chief financial officer, told Reuters Friday before the application was granted.
The company, which specializes in in-vitro diagnostic products, said normal day-to-day operations would not be affected by the move and operations outside Canada were not included in the filing.
Mr. Gardner said Adaltis is working on a restructuring plan to keep the company alive.
“There's no guarantee that [the restructuring plan] will take place, but we would hope to have that in place before the creditor protection ends,” he said.
Adaltis shares, which closed at 7.5 cents on June 26 on the Toronto Stock Exchange, were placed under review earlier this week by the exchange.
Last week, Adaltis said it had secured an additional bridge loan of up to $2-million from Victoria Square, and said it was in talks for financing for continuing operations beyond June.
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