Court appoints BDO Dunwoody monitor.
Gandinnovations has been granted protection from its creditors under Canada’s Companies’ Credits Arrangement Act (CCAA), allowing it to “restructure its affairs.” BDO Dunwoody Limited, an accounting-service firm headquartered in Toronto, has been appointed Monitor of Gandi under the agreement.
In a letter sent to its suppliers, Gandi reports that, "The CCAA allows companies…that are experiencing financial difficulty to avoid liquidation, continue operating and restructure their corporate affairs. The Initial Order does this by providing for a stay of proceedings. During the stay period creditors will not be able to engage in any collection actions and no one will be able to terminate any contracts with the company, without first getting permission of the court. The Monitor…will closely monitor the company and assist Gandi in completing their restructuring. We expect to complete this process by the end of August 2009.
"Gandi will pay all the bills it incurs in the CCAA proceedings. The Initial Order requires Gandi to pay all amounts owing to suppliers, service providers and any other creditor arising after Gandi's CCAA filing and Gandi has budgeted for adequate cash to do so. Gandi's lender supported its application under the CCAA and will continue to work with us during the course of the proceedings. Our CCAA proceedings are well planned, well financed and well organized.”