VANCOUVER — A Canadian fintech company that attracted millions of dollars from investors and said it had begun preparing for an initial public offering has filed for creditor-protection proceedings, instead.
Vancouver-based Progressa, an alternative lender, filed under the Companies’ Creditors Arrangement Act in late September, with court documents showing it owed tens of millions and required an immediate infusion of money.
Later this week, some of the company’s creditors will vote on a plan that would see them receive at least some of what they’re owed and the company continue under new ownership. However, not everyone likes the proposal, which would see another entity linked to the current chief executive officer become Progressa’s sole shareholder. Some argue it may not be the best option and has the tinge of at least a perceived conflict of interest, with some of them asking the court to postpone the meeting.