Limpact International Limited Completes Debt RefinancingMarch 04, 2015
Limpact International Limited has completed a refinancing of approximately $5 million of indebtedness owed to HSBC Bank Canada. In January 2015, HSBC brought an end to the existing forbearance agreement in respect of the amounts owing by Limpact and commenced an application in the Ontario Court of Justice for the appointment of a receiver of Limpact, appointing Deloitte Restructuring Inc. as receiver and manager of Limpact with authority to sell its assets.
Limpact subsequently entered into an agreement with a replacement Canadian alternative lender, Bridging Finance Inc., for the refinancing. As a result of this agreement, HSBC agreed to an adjournment of the receivership proceedings to allow for sufficient time to complete the refinancing. In connection with the refinancing, Limpact entered into an agreement with AK Funding Corp. to provide the capital investment and third party guarantees required by Bridging Finance, in consideration for which Limpact issued to AK common share purchase warrants to acquire an approximately 90% ownership position of Limpact.
Wildeboer Dellelce LLP acted for Limpact and AK in connection with the transaction with a team that included Alfred Apps and Michael Rennie (corporate/securities) and James Padwick and Steven Vasilevski (debt products).