Fasken acts for the debtor Orbite Technologies in the context of its companies' Creditors Arrangement Act

​Fasken acts for the debtor Orbite Technologies Inc. (“Orbite”) in the context of its Companies' Creditors Arrangement Act (CCAA) proceeding. Orbite is a publicly traded company that was, prior to its insolvency, listed on the Toronto Stock Exchange. Orbite is now listed on the NEX board of the TSX Venture. Orbite has developed unique and proprietary processes and technologies, which are expected to enable environmentally sustainable and cost effective production of high value products such as high-purity alumina (“HPA”), as well as rare earth and rare metal oxides. Orbite was forced to file for insolvency protection following a breakdown of machinery at its HPA plant in Cap-Chat, Quebec. The total gross capital costs accounted for the construction and commissioning of the HPA plant were approximately $160 million as of June 30, 2017. Orbite’s total indebtedness is approximately $50 million. In the context of the CCAA proceeding, Orbite has filed a claim against its insurer in an amount of approximately $23 million to obtain payment under its machinery and business interruption insurance policy. The insurer has denied coverage. A trial is scheduled to take place between January 29th and February 2nd 2018.​