Canadian medical imaging software provider Cedara Software has announced that Surgical Navigations Specialists, its image-guided surgery subsidiary, is reducing its workforce by approximately 50 employees. The company also has obtained an order for protection under the Companies' Creditors Arrangement Act (CCAA) from the Ontario Superior Court of Justice.
As a result of the order, the current obligations of SNS to creditors will be stayed to September 12, unless further extended by the court, according to the vendor. Mississauga, Ontario-based Cedara said it would be able to restructure SNS under creditor protection, and continue as a provider of surgical navigation software to OEMs. The protection also will give the company the time to determine how to maintain service to existing SNS customers.
As part of the restructuring, SNS said it intends to consider disposing of non-strategic assets, and assets related to its retail surgical navigation business, which SNS intends to exit, according to Cedara. The order provides for Cedara to provide debtor-in-possession financing directly to SNS; this financing will have priority over existing secured claims.
Cedara said this financing will be more than offset by the projected reduction in its expenses. For Cedara, the action allows the firm to focus on its core imaging software business, according to chairman and CEO Dr. Michael Greenberg.
By AuntMinnie.com staff writersAugust 15, 2001
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