Seair & subsidiary Seair Diffusion Systems restructuring under Bankruptcy and Insolvency Act

We acted for Seair Inc. and its wholly-owned subsidiary, Seair Diffusion Systems Inc. in respect of their restructuring under the proposal provisions of the Bankruptcy and Insolvency Act. The process was aggressively contested from the outset by a number of aggrieved shareholders. Notwithstanding the shareholders’ objections, the proposal was approved by the companies’ creditors and the court. Seair had developed proprietary technology used to treat waste water and industrial fluid in the oil and gas, mining and municipal sectors. Seair Inc. was publically traded, and had raised significant funds from the issuance of both shares and secured convertible debentures. The proposal contemplated the cancellation of all existing shares and the issuance of new shares in favour of the secured creditors, including the funder of the proposal. The proposal was narrowly approved by Seair’s creditors and the court despite the objections of a number of Seair Inc.’s shareholders. The proposal has now been implemented.