Travel technology firm GuestLogix has sought court protection from its creditors to allow it to continue operating while tackling financial problems.
The Canadian payment technology company will attempt to restructure and re-organise its assets, business and financial affairs, a statement said.
The operations of Dublin-based subsidiary OpenJaw Technologies, acquired in December 2014, are not subject to the court protection under the Companies’ Creditors Arrangement Act in Canada.
Toronto-based GuestLogix “has been otherwise unable to restructure its affairs in an adequate manner as a result of a combination of continuing negative operating results, the current state of the capital markets”.
It also cited the inability to identify a suitable transaction from a previously announced strategic review process that would satisfy all of its existing financial obligations.
Trading in the company’s shares were suspended on the Toronto stock exchange.
GuestLogix announced an internal review in December after it was found that certain contracts may not have followed proper revenue recognition accounting policies.
This followed 30 jobs being cut in October as part of a restructuring and C$6 million cost saving plan.