guestlogix
2 years ago
 

GuestLogix is up for sale in court-ordered process

GuestLogix, a seller of payment processing technology to travel companies, is on the auction block, following its slip into creditor protection earlier this month.

A court has okayed for the Toronto company to enter into a sale and investment solicitation process.

It has also updated the order to include GuestLogix Ireland. In late 2014, GuestLogix acquired OpenJaw Technologies US$41.2 million under its GuestLogix Ireland arm.

Companies will be able to bid to acquire the business or its assets — or offer a refinancing or recapitalization of the company.

Qualified bids are due by the end of March. The goal is to close a transaction by May 6.

Canaccord Genuity is financial advisor to the company; PricewaterhouseCoopers is its monitor, which has a webpage with details.

guestlogix-inset

Meanwhile, a securities class action was filed against Guestlogix, alleging that it published annual and interim financials and made other statements that had “material misrepresentations regarding various financial covenants attached to two different credit facilities” it had entered into between 2013 and 2015.

Guestlogix is alleged to have failed to disclose that there were financial covenants contained within two credit facilities pertaining to trailing earnings before interest, taxes, depreciation and amortization (EBITDA) or what the consequences were for breaching these covenants.

Guestlogix is in default of both credit facilities.

Last December, Guestlogix said that an internal review of its accounting practices and revenue recognition policies found that “it may be required to restate its prior financial statements and that the preliminary review indicated that the restatement would be material.”

Despite these events, GuestLogix will operate as usual, thanks in part to a $3 million financing facility. Activities include deploying its newest iOS retail technology on the fleet of Sun Country’s Boeing 737s. The company has the travel industry’s largest client list of airlines and rail companies for its payment processing solutions.

For more story context, see our earlier report, “GuestLogix files for creditor protection.”

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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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