GuestLogix files for creditor protection

GuestLogix, the Tornoto-based company that’s the largest onboard payments processor for the travel sector, has filed today for creditor protection and plans a further restructuring.

The move came a day after one of its major lenders formally said that it was in default of its obligations.

Today shares in GuestLogix stock were suspended from trading on the Toronto exchange.

OpenJaw Technologies, which the company acquired for $41 million in December 2014, will remain unaffected, said a company statement.

This outcome is far afield from the desired goal of a strategic review begun in 2012, which was supposed to result in other outcomes, like raising capital.

Guestlogix shed workers in October 2013 and another 30 employees in October 2015. Late last year, its CEO departed.

New CEO John Gillberry has a finance background. That might help, given that Guestlogix’s accounting practices are under review, according to the company statement.

The company’s Investor Day presentation noted that it has a large opportunity due to an increasing desire for ancillary sales from many of its airline customers.

While it still has a lead in its list of major airline customers, the company risks having some of that share stolen by competitors while it tries to reorganize.

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Sean O'Neill

About the Writer :: Sean O'Neill

Sean O’Neill had roles as a reporter and editor-in-chief at Tnooz between July 2012 and January 2017.

 

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