AAER gains court protection from creditors

CANADA: Fledgling Canadian turbine maker AAER Inc. has obtained court protection from creditors, following a series of 'temporary' layoffs, while it seeks a buyer .

AAER: court protection from creditors

The Quebec Superior Court has granted the company protection under the Companies' Creditors Arrangement Act (CCAA) for an initial period of 30 days, expiring May 7.

In a bid to preserve cash last month, AAER temporarily laid off 28 employees, its second round of job cuts in five months.

AAER, based in Bromont, said it sought court protection from creditors because its cash in hand would not allow it to meet its current obligations.

The company said: "The CCAA filing is also a necessary step in the context of the board's ongoing review and assessment of AAER's strategic alternatives." Its restructuring will include "soliciting third party offers."

The company has been granted C$330,000 in interim financing to address its working capital needs during the CCAA process.