July 1, 2004 by Canadian Underwriter
Trading will cease in shares of Vector Intermediaries as the company faces up to an insurmountable financial crisis. The broker consolidator says that, despite having sold off all its assets, the company still faces a multi-million-dollar shortfall in meeting debt obligations.
Subordinated lenders have demanded payment of more than $20 million plus interest owed under the company’s subordinated credit facility. The company already faces a $6.7 million debt to its senior lenders, but now says efforts to restructure its debt have failed.
Vector has been in a tailspin for some time, with all but one of its directors resigning in 2003, and the Alberta Securities Commission having ceased trading of its shares last summer. The sole remaining director has resigned effective immediately.
Vector subsidiary Bow Valley Insurance was sold to the brokerage’s president, Kirit Gohill, who says he plans to grow the Calgary-based company through acquisition. Alpine Financial Group has purchased brokerages Garnett Dadswell in Edmonton, Dadswell Forster in Lethbridge, and Wiseman Coupland in Red Deer. Saskatoon Agencies Inc. was sold to an unnamed buyer.
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