ConjuChem to restructure under CCAA protection

ConjuChem Biotechnologies (TSX:CJB) has been granted an initial order by the Superior Court of Quebec (commercial division) under the Companies’ Creditors Arrangement Act (Canada).

The company also announced that Felix Baker has resigned as a director, adding that there is no disagreement between Mr. Baker and ConjuChem.

In a statement, the company said that after an analysis by a Special Committee of independent directors, it concluded that there are “no other viable alternatives and, as a result, has determined that the best course of action is to pursue its overall restructuring under court supervision.”

The committee was created in mid-January to explore and evaluate all strategic alternatives in view of ConjuChem’s ongoing financial needs.  ConjuChem said it plans to use CCAA protection in order to allow it to “deal decisively with its debt burden for the benefit of all stakeholders.”

RSM Richter Inc. will act as monitor and will post proceedings and other documents relating to the restructuring of ConjuChem on a dedicated website which will be available through their general website.