Techlink’s Bankruptcy Unlikely to Include Payments for Federal and Provincial Loans

by San Antonio Attorney

After several years of facing financial difficulties, Techlink International Entertainment has received $16.5 million both in federal and provincial funding.  The company recently filed for bankruptcy and the taxpayers are suffering repercussions, due to the fact that the money hasn’t been repaid.

John Xidos, Techlink proprietor, requested for a cash advance until the scheduled payment of the Atlantic Lottery Corp.

Xidos stated that the company had problems with temporary cash flow and the province did not grant any funds, eventually closing the company.  This malady left almost 50 people unemployed.

Bankruptcy records reflect that the company owes money to its creditors amounting to more than $11 million, while the amount of assets is around $2 million.  These assets were sold after a receiver was appointed in August and the company declared bankruptcy in October 2015.

BDO Canada, the assigned receiver, eventually took hold of the personal property.  Leonard Shaw, spokesman of BDO Canada, stated that the company seized the software, technology and patents that Techlink produced.  Other items include VLT machines, office equipment, furniture and a van.

David Read, owner of Bedford-based Read Management, sat on the board of directors in Techlink.  Ulf Snarby, the owner of Pandealus, was elected as board president.

Mel Rusinak, a NSBI spokeswoman, stated that the province had received $457,782 in total amount from the assets.  NSBI had already invested in Techlink, which included $5.5 million in equity.

One of the non-secured creditors is the Atlantic Canada Opportunities Agency.  In 2002, ACOA and Enterprise Cape Breton Corporation gave monetary funding to Techlink and the agency approved a total of $8.5 million for the next 14 projects.

When Techlink closed, the company received all except $1 million.  All funds were intended for repayment following certain conditions.

However, ACOA claimed that only $1.7 million has been repaid.

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