BuildDirect (Vancouver, British Columbia) announced it would hire Canaccord Genuity Corp. investment bank to help facilitate a sale or raise investment capital in the wake of its filing for creditor protection in late October, according to the Globe and Mail.
The hiring is pending approval by the British Columbia Supreme Court. Approval will start a process that gives prospective bidders until Dec. 15 to express interest, the Globe and Mail said. The date could be pushed back to Feb. 23 if a stay of proceedings is granted by the court.
BuildDirect released the following statement:
“On October 31, 2017, BuildDirect voluntarily filed for relief under the Companies’ Creditors Arrangement Act (CCAA). On November 3, 2017, the United States court granted an order under Chapter 15 of the United States Bankruptcy Code which essentially extended the effect of the Canadian proceedings into the United States.”
“We are evaluating a range of alternatives to recapitalize BuildDirect so that we can continue to transition from an e-commerce business to a platform business.”
“BuildDirect is not bankrupt. As part of its restructuring process, BuildDirect secured USD $15M in financing in connection with the filing to fund the continued development of the business.”
