CO2 Solutions announces intent to file for bankruptcy
By P&PC Staff
By P&PC Staff
CO2 Solutions Inc. has announced its intent to file for bankruptcy under the Bankruptcy and Insolvency Act (Canada).
Ernst and Young will act as trustee to assist CO2 Solutions in its restructuring efforts.
The filing of the notice follows the review of the corporation’s strategic alternatives by all the independent directors of the board (the “Special Committee”) of significant cost overruns in connection with the completion of the CO2 capture unit located at the pulp mill of Resolute Forest Products in Saint-Félicien, Québec.
CO2 Solutions is a Canadian corporation and in the field of enzyme-enabled carbon capture and has been actively working to develop and commercialize the technology for stationary sources of carbon pollution.
At the recommendation of the Special Committee, the board of directors of CO2 Solutions determined it would be in the best interest of the corporation and all of its stakeholders for the corporation to seek protection from its creditors, given the corporation’s current financial position. While under protection, the corporation, with the support of the Special Committee and under E&Y’s supervision, will continue with its efforts to pursue strategic alternatives.
There can be no assurance that the strategic process will result in the realization of any specific transaction or agreement. The corporation does not plan to make future comments about the status of this strategic process unless there are material developments.
Robert Manherz resigned from the board of directors of the corporation in the context of the filing of the notice because he is a significant secured creditor of the corporation.
As a consequence of the filing, all recourses by the unsecured creditors of the corporation will be stayed for an initial 30-day period (which may be extended by the court), which will protect CO2 Solutions and its assets from claims from its creditors while it pursues its restructuring efforts.