Sandvine Corporation Faces Bankruptcy Proceedings in Ontario
- Sandvine Corporation filed for proceedings under the Companies' Creditors Arrangement Act in Ontario on October 2, 2024.
- The company has secured support from over 97% of its lenders to restructure its debt while aiming to maintain operations.
- The restructuring is a critical step toward transforming Sandvine's business model for long-term sustainability.
On October 2, 2024, Sandvine Corporation initiated restructuring proceedings under the Companies' Creditors Arrangement Act in Ontario, seeking protection for their operations amid financial difficulties. The company has entered a Restructuring Support Agreement with over 97% of its secured lenders, transitioning its legacy debt into equity, supported by a new super senior loan facility totaling US$45 million. This effort comes after Sandvine faced significant disruptions due to its placement on the U.S. Department of Commerce's Entity List. The restructuring aims to enable a transformation in operations, focusing on serving large telecommunications companies in democratic jurisdictions. Leadership is committed to maintaining day-to-day functions throughout the process, with oversight from KSV Restructuring Inc. Advisors will ensure fair treatment for creditors while navigating this challenging process for long-term success.