Pakit Inc. ("Pakit" or the "Petitioner") filed an application before the Supreme Court of British Columbia (the "British Columbia Court") pursuant to the Companies' Creditors Arrangement Act, R.S.C. 1985 c. c-36 as amended (the "CCAA").

The British Columbia Court made an order (the "Initial Order") on July 28, 2011, granting the Petitioner the protections afforded by a stay of proceedings while Pakit pursued sources of new funding and related restructuring initiatives under the CCAA. The Initial Order appointed Alvarez & Marsal Canada Inc. (the "Monitor") as Monitor of the business and financial affairs of the Petitioner in the CCAA proceedings.

On February 2, 2012, Alvarez & Marsal Canada Inc. was appointed receiver and manager of the assets (the "Receiver"), undertakings and property of Pakit pursuant to section 243(1) of the Bankruptcy and Insolvency Act and section 39 of the Law and Equity Act.

 

The Receiver has signed an Asset Purchase Agreement for the sale of certain of the assets of Pakit Inc., which was subject to court approval which was received on June 12, 2012. The Receiver has sold the assets of Pakit Inc. as described in the Asset Purchase Agreement to Petrochem Holding Co. (Fairfax Financial Holdings) effective July 24th for the amount of the Receiver Advances (approximately $2.2 million subject to final adjustments).

Additional information regarding the sales transaction and the sales process are provided in the Receiver’s 3rd report.