TORONTO (CP) -- PharmEng International Inc., a contract drug manufacturer, says it plans to file a proposal under the Bankruptcy & Insolvency Act (Canada) after defaulting on millions of dollars in debt obligations.
A. Farber & Partners Inc. has been appointed as the licensed trustee in bankruptcy for the company, PharmEng said.
The move comes after the company defaulted on $7 million worth of debt obligations earlier this month. In addition, PharmEng said it's also in default under its $14 million credit facility and term loan with Landsbanki Islands h.f.
"PharmEng's day-to-day operations will continue uninterrupted throughout the . . . process while the company undertakes to restructure and implement a plan of reorganization," the Toronto company said.
"The objective of filing the (notice of intention) is to regain the company's financial footing. Of paramount importance to the company is to retain its customers throughout the process by providing no disruption to service levels."
PharmEng is a consulting and contract manufacturing company that serves the pharmaceutical and biotechnology industries in North America and internationally.