The Canadian online bingo software provider Parlay Entertainment Inc is in financial trouble, judging by a statement this week outlining restructuring and Bankruptcy and Insolvency Act (Canada) moves.
The statement advises that the board of directors has appointed BDO Canada Limited to assist it in a restructuring strategy, and to act as its Proposal Trustee in "....the filing of a Notice of Intention to make a proposal to its creditors in terms of the Act with the Superior Court of Justice, Province of Ontario."
As part of the Bankruptcy and Insolvency Act filing, Parlay advises that it has agreed to borrow from MPProjects Assets S.A., an aggregate amount of up to Cdn$500,000 by way of draw down credit financing in order to provide MPProjects with a second ranking charge "encumbering the universality of Parlay's property wherever located."
BDO Canada will assist Parlay to restructure, considering a number of strategic options, including the possibility of an offer for the shares of the company or an offer for the purchase of all or substantially all of the company's assets.
Parlay Entertainment advises that MPProjects has expressed an interest in making an offer to purchase substantially all of its assets and has provided a deposit with BDO in the amount of Cdn$100,000 as evidence of its intention so to do.
The board further advises that Parlay has not filed its annual audited consolidated financial statements in accordance with the legal requirement to do so by May 2, 2011, with the Canadian securities regulators. A Cease Trade Order was accordingly issued on May 5th, suspending trading in the company's shares until the financial statement can be submitted.
Source: InfoPowa News