MONTREAL – Broadband wireless access solutions vendor SR Telecom Inc. announced Monday it had filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) with the Quebec Superior Court. The company also indicated that operations will continue as usual during the CCAA process, although 35 jobs have been eliminated and the company continues to actively seeking a buyer.
The company announced its intention to pursue its sale on November 8, after a strategic review on May 10.
SR Telecom stated in a media release that it believes that CCAA protection will enable it to better position itself for an acquisition.
“Despite the CCAA filing, we remain focused on the design, delivery and deployment of our WiMAX solutions and are fully committed to ensuring the satisfaction of our customers around the world,” said SR Telecom president and CEO Serge Fortin. “Today’s filing provides a framework in which to optimize and leverage our company’s assets for all its stakeholders.”
The 35 job cuts will occur at the company’s Montreal headquarters and other offices around the world.
“We have taken the CCAA route to ensure the future of SR Telecom; the unfortunate side effect is that we must reduce our workforce,” said Fortin. “We are maintaining appropriate staff levels to continue the development of our WiMAX solutions and sustain a strong level of customer support.”
SR Telecom management believes that the sale and restructuring process will likely be completed during the first quarter of 2008, noted the media release.
