Core Viewpoint - Colabor Group Inc. and its subsidiaries are seeking creditor protection under the Companies' Creditors Arrangement Act (CCAA) due to financial difficulties and are initiating a formal sale and investment solicitation process (SISP) to explore potential transactions [1][2]. Group 1: CCAA Application and SISP - The company is applying for an initial order to protect itself from creditors and to facilitate a SISP, allowing interested parties to submit proposals for the best possible transaction [2]. - The application includes a request for a stay of proceedings against the company and its subsidiaries, as well as interim debtor-in-possession (DIP) financing from major banks to support operations during the restructuring [2]. Group 2: Financial Obligations and Trading Status - The announcement follows a previous disclosure that the company failed to meet its obligations to provide non-binding letters of intent for refinancing and raising at least $15 million in equity by December 15, 2025 [3]. - Trading of the company's common shares on the Toronto Stock Exchange (TSX) has been halted, and the company is under delisting review due to its financial situation [4]. Group 3: Company Overview - Colabor is a distributor and wholesaler of food products serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market [5].

Core Viewpoint - Colabor Group Inc. is currently facing challenges in securing satisfactory refinancing options and is exploring strategic alternatives to address its financial situation [1][3][4]. Financial Situation - The company extended its forbearance agreement with senior lenders and Investissement Québec until January 30, 2026, requiring maintenance of $1 million in liquidity and a minimum trailing twelve-month EBITDA [2]. - Colabor must provide non-binding letters of intent for refinancing and raise at least $15 million in equity by December 15, 2025, but it does not anticipate meeting these requirements [2][3]. Strategic Alternatives - The company is negotiating further amendments to the forbearance agreements to secure additional liquidity for short-term cash needs and to continue its strategic alternatives review [4]. - In the absence of successful strategic alternatives, Colabor's operations could be significantly impacted, and the company is considering seeking protection under creditor protection laws [5]. Business Overview - Colabor operates as a distributor and wholesaler of food products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market [6].