Cygnal Technologies Corporation, Cygnal Technologies Ltd. and Accord Communications Ltd.

CCAA Filing Information

Page last updated: March 27, 2008

This page is for information purposes only and you should consult your professional adviser if you have any questions or are uncertain as to your rights or obligations.

Status of File as at March 27, 2008

On March 17, 2008, the Court granted an Order sanctioning and approving the plan of arrangement and reorganization of the Applicants pursuant to the CCAA and reorganization of Cygnal under the Business Corporations Act (Ontario) dated January 20, 2008.
[Mar 18, 2008]
On March 7, 2008, the Meetings of Creditors of Cygnal Technologies Corp, Cygnal Technologies Ltd and Accord Communications Ltd. (the "Applicants") was held for the purposes of considering and voting on the Applicants' plan of arrangement and reorganization under the Companies Creditors' Arrangement Act (the "Plan"). At the Meeting of Creditors, the requisite majority of creditors voted in favour of the Plan.

On March 11, 2008, the Monitor filed its fourth report to the Court (the "Fourth Report") the purpose of which was to (i) inform the Court on the Applicants' activities and financial performance since the Monitor's last report; (ii) to provide the Court with an update on the status of the ongoing claims process; (iii) to inform the Court of the approval of the Plan by the Affected Creditors; and (iv) to request an order be granted by the Court, to sanction the Plan.

On March 14, 2008 the Monitor filed a supplementary report (the "Supplementary Report") to the Court. The purpose of the report is to inform the Court of the Monitor's accounts and those of its legal counsel and to seek the approval and allowance of same for the period from the filing date to present.
[Feb 26, 2008]
The Meetings of Creditors to consider and vote on the Plan of Cygnal Technologies Corp., Cygnal Technologies Ltd. and Accord Communications Ltd. will be held on Friday, March 7, 2008 at the Holiday Inn, 370 King Street West, Toronto, Ontario, Regency DE Room. Proxies, Voting Letters and Distribution Option Notices must be filed with the Monitor by 5:00 p.m. on March 6, 2008 (Toronto time) or with the Chair prior to the commencement of the applicable Creditors Meeting. As indicated below, on February 1, 2008, the Monitor mailed Notice of the Meeting of Creditors, an Instruction letter and an Information Package (as defined in the Creditor Meetings Order) to affected creditors with proven claims or allowed voting claims. The Information Package included Creditor Meetings Notice, a copy of the Plan proposed by the Applicants, the report of the Monitor on the Plan, a copy of the Creditor Meeting Order, a copy of the Information Circular, a Distribution Option Notice, and a blank general proxy and voting letter.

On or before February 26, 2008, the Monitor issued Supplementary Notices of Revision and Disallowances (the "Supplementary Revision Notice") to any Creditor whose Supplementary Claim the Applicants and the Monitor determined should be disallowed in whole or in part. The Supplementary Claims Procedure has been completed in accordance with the provisions of the Supplementary Claims Procedure Order.
[Feb 1, 2008]
On February 1, 2008, the Monitor mailed Notice of the Meeting of Creditors, an Instruction letter and an Information Package (as defined in the Creditor Meetings Order) to affected creditors with proven claims or allowed voting claims. The Information Package included Creditor Meetings Notice, a copy of the Plan proposed by the Applicants, the report of the Monitor on the Plan, a copy of the Creditor Meeting Order, a copy of the Information Circular, a Distribution Option Notice, and a blank general proxy and voting letter. The time and location for the Meetings of Creditors, to be held on March 7, 2008, can be found in the Notice of the Meeting of Creditors, attached.

In addition, on February 1, 2008, in accordance with the Supplementary Claims Procedure Order, the Applicants mailed to all potential supplementary creditors, the Supplementary Claims Materials (as defined in the Supplementary Claims Procedure Order) with respect to determine the value of Creditors' Restructuring Claims arising after November 30, 2007 and on or before January 30, 2008. Any Creditor wishing to assert a Supplementary Claim must complete the Supplementary Proof of Claim, which must be delivered to, and received by the monitor by the Supplementary Claims Bar Date of 5:00 p.m. on Wednesday, February 20, 2008.
[Jan 31, 2008]
On January 30, 2008, Cygnal Technologies Corporation, Cygnal Technologies Ltd. and Accord Communications Ltd. (collectively, the "Applicants") sought and obtained the following Orders from the Court:
  • A Supplementary Claims Procedure Order to supplement the Initial Claims Procedure Order, to determine the value of Creditors' restructuring claims arising after November 30, 2007 and on or before January 30, 2008 for the purposes of voting on the Plan (as hereinafter defined) and receiving distributions under the Plan;
  • A Creditors Meeting Order authorizing and directing the Applicants to present a joint plan of arrangement and reorganization (the "Plan") to the classes of affected creditors and approving the process whereby the Applicants will call for and conduct a meeting of creditors (the "Meeting of Creditors"); and
  • A Stay Extension Order extending the Stay Period provided in the Initial Order until March 21, 2008.
[Jan 28, 2008]
On January 25, 2008, the Applicants filed Notices of Motion in the Ontario Superior Court of Justice and the Monitor filed its Third Report to Court with respect to the Applicant's request for:
  • an Order (the "Supplementary Claims Procedure Order") supplementing the Initial Claims Procedure Order, to determine the value of Creditors' restructuring claims arising after November 30, 2007 and on or before January 30, 2008 for the purposes of voting on the Plan (as hereinafter defined) and receiving distributions under the Plan;
  • an Order (the "Creditors Meeting Order") authorizing and directing the Applicants to present a joint plan of arrangement and reorganization (the "Plan") to the classes of affected creditors and approving the process whereby the Applicants will call for and conduct a meeting of creditors (the "Meeting of Creditors"); and
  • an Order (the "Stay Extension Order") extending the Stay Period provided in the Initial Order until March 21, 2008.
[Jan 7, 2008]
On January 7, 2008, the Monitor issued Notices of Revision and Disallowances (the "Revision Notice") to any Creditor whose Claim the Applicants and the Monitor determined should be disallowed in whole or in part. If any Creditor disagree with the revised amount of their Claim, as indicated on the Revision Notice, and intend to dispute the Notice, they must bring a motion to have the amount of such Claim determined by the Ontario Superior Court of Justice (Commercial List) (the "Court") in Court File No. 07-CL-7281 by serving on the Applicants and the Monitor and filing with the Court by no later than January 14, 2008, a motion record in respect of their Claim.
[Dec 10, 2007]
On December 10, 2007, the Applicants filed a Notice of Motion in the Ontario Superior Court of Justice for an extension of the Stay Period in the Initial Order to January 31, 2008.

On December 5, 2007, the Monitor filed its Second Report to the Court to inform the court of the Applicants' financial performance and cash flow since commencement of the CCAA Proceedings, efforts to identify a purchaser or establish alternate sources of financing, the status of the ongoing Claims Procedure, the Applicants' intentions regarding a plan of arrangement, the independent review of the DIP Lender's Security, the Monitor's activities since the First Report and the Applicants' request for an extension of the stay of proceedings.
[Nov 26, 2007]
On November 23, 2007, Cygnal Technologies Corporation, Cygnal Technologies Ltd. and Accord Communications Ltd. (collectively, the "Applicants") sought and obtained an order from the Court (the "Claims Procedure Order"), pursuant to which a claims procedure was established to determine the value of creditors' claims against the Applicants for the purposes of voting and distribution on a plan of compromise or arrangement to be filed by the Applicants with the Court.

On November 27, 2007, the Monitor sent to each creditor listed on the books and records of the Applicants with a claim, the Instruction Letter, a blank Proof of Claim form and the Claims Procedure Order (the "Claims Materials"). If you believe that you have a claim against the Applicants, you should file a Proof of Claim (in the form attached). The Proof of Claim must be delivered to, and received by the Monitor by the claims bar date, fixed as 5:00 p.m. (Toronto time) on December 31, 2007 (the "Claims Bar Date").
[Nov 14, 2007]
On November 14, 2007, Cygnal Technologies Corporation, Cygnal Technologies Ltd. and Accord Communications Ltd. (the "Companies") filed a Motion requesting protection under the Companies' Creditors Arrangement Act ("CCAA") and the Ontario Superior Court of Justice (Commercial List) (the "Court") granted an Order approving the motion.

This Web site will be updated as information becomes available.

Claims Procedure:

26 KB Instruction letter (English)
26 KB Instruction letter (French)
26 KB Notice of Claims Bar Date (English)
26 KB Notice of Claims Bar Date (French)
26 KB Proof of Claim form (English)
26 KB Proof of Claim form (French)


Supplementary Claims Procedure:

26 KB Supplementary Claims Procedure for Voting and Distribution Purposes.


Meeting of Creditors:

26 KB Information Package regarding Meeting of Creditors, inclusive of the Instruction letter to affected creditors with proven claims or allowed voting claims with respect to the Applicants' Plan.
26 KB Instruction Letter (French)
26 KB Creditor Meeting Notice (French)
26 KB Distribution Option Notice (French)
26 KB General Proxy (French)
26 KB Voting Letter (French)


  Monitor's Reports:

26 KB Monitor's Fourth Report, dated March 11, 2008, requesting an Order to sanction the Plan.
26 KB Monitor's Report to the Creditors on the Plan of Arrangement, dated January 28, 2008.
26 KB Monitor's Third Report, dated January 25, 2008.
26 KB Monitor's Second Report, dated December 5, 2007.
26 KB Monitor's First Report, dated November 20, 2007.


Court Orders:

26 KB Sanction Order, dated March 17, 2008.
26 KB Supplementary Claims Procedure Order, dated January 30, 2008.
26 KB Creditor Meetings Order, dated January 30, 2008.
26 KB Order Stay Extension, dated January 30, 2008, approving the Stay Period extension to March 21, 2008.
26 KB Court Order, dated December 10, 2007, approving the Stay Period extension to January 31, 2008.
26 KB Claims Procedure Order, as at November 23, 2007.
26 KB Initial Order, as at November 14, 2007.


  Motion Materials:

26 KB Motion Record - Supplementary Report requesting the Court to grant an Order to sanction the Plan (returnable March 17, 2008)
26 KB Motion Record - Supplementary Claims Procedure Order (returnable January 30, 2008)
26 KB Motion Record - Creditor Meetings Order (returnable January 30, 2008)
26 KB Motion Record - Stay Extension Order (returnable January 30, 2008)
26 KB Motion Record (returnable December 10, 2007).
26 KB Motion Record, dated November 21, 2007.
26 KB Motion Record, dated November 14, 2007.
26 KB Notice of Application, as at November 14, 2007.


Service List:

26 KB Service List, as at January 31, 2008.
26 KB Service List, as at January 17, 2008.
26 KB Service List, as at January 10, 2008.
26 KB Service List, as at December 14, 2007.
26 KB Service List, as at December 11, 2007.
26 KB Service List, as at November 29, 2007.
26 KB Service List, as at November 28, 2007.