Vancouver’s Sustainable Produce Urban Delivery may prove not-so-sustainable after all.
SPUD’s parent company Freshlocal Solutions has filed for creditor protection, according to a statement. “Given the market conditions,” Freshlocal says it was unable to obtain further bridge financing.
Freshlocal Solutions was granted an initial order today pursuant to the Companies’ Creditors Arrangement Act by the Supreme Court of British Columbia on application by the Company seeking court protection from its creditors to allow it to pursue a restructuring of its business and property as a going concern.
Ernst & Young was appointed as monitor in the CCAA proceeding and will assist Freshlocal in creating a restructuring plan, which is anticipated to include a process to seek to monetize the company’s assets, obtain short term liquidity, and secure long-term funding for the projects that may form the basis of Freshlocal’s “go-forward business.”
Last year Freshlocal made its debut on the Toronto Stock Exchange. However, trading in the company’s common shares has been halted and may be delisted from trading on the TSX.