BuildDirect.com Technologies Inc. on October 31, 2017 sought and obtained an initial irder pursuant to the Companies’ Creditors Arrangement Act (CCAA).
PricewaterhouseCoopers Inc. has been appointed as Monitor for the CCAA proceedings.
On October 27, 2017 Jeff Booth, co-founder and former President & CEO of BuildDirect, announced on LinkedIn his leaving of the company with immediate effect.
In connection with its CCAA filing, BuildDirect has negotiated a US $15 million debtor-in-possession (DIP) interim financing with a syndicate of lenders including Pelecanus Investments Ltd., Lyra Growth Partners Inc., and Beedie Capital Partner. The Court has approved this interim financing which provided for an immediate advance of US $4 million within 24 hours of approval of the DIP term sheet by the Court.
BuildDirect’s intention is to continue its operations during these CCAA proceedings while it works on its financial restructuring.
Dubbed as one of bright IPO hopefuls by some in 2016, BuildDirect has been funding its operations in bridge loan funding primarily from the three family office investors. Since November 2015, BuildDirect has raised over $116 million in bridge financing.
BuildDirect backers also include venture capital investors, OMERS Ventures, Mohr Davidow Ventures, BDC Capital, Kingfisher Equity Partners, and institutional investor, BMO Asset Management.
BuildDirect management team now consists of CEO Dan Park (formerly GM of Commercial Vertical of Amazon Business), Chief Supply Chain Officer Jim Hourigan, CTO Tal Ball, VF of Finance John Sotham, and Chief Legal and People Officer Suzanne Mercier.
correction: BuildDirect has arranged a US $15M DIP financing, not $5M.
photo credit: BuildDirect.com Technologies