The financial turmoil surrounding Colabor Group has escalated significantly, prompting the company to consider bankruptcy protection. This announcement was made in a press release on Monday morning, causing an immediate drop in its stock value.
Colabor Group’s Financial Struggles
Colabor Group has seen its debt increase sharply over recent months. A notable factor contributing to this situation was a cyberattack in July, which resulted in an $8 million loss in revenue. As a result, the company is now exploring options for creditor protection.
Debt Restructuring Efforts
In October, Colabor’s creditors granted the company a reprieve until January 30, 2026, to secure new funding. The company was required to maintain at least $1 million in liquidity and to submit non-binding letters of intent that would satisfy its lenders regarding refinancing and raising a minimum of $15 million.
Lack of Progress and Future Outlook
Colabor admitted it failed to provide satisfactory letters of intent by the deadline. The company stated, “Despite all efforts by the Company and its external advisors, we have not supplied our lenders with a viable refinancing proposal.” Colabor is still in talks with primary lenders and Investissement Québec to negotiate further modifications of their existing agreements.
- Current stock value: $0.065
- Stock value decrease: Over 60% following the press announcement
- Deadline for new funding: January 30, 2026
- Revenue loss due to cyberattack: $8 million
- Minimum liquidity requirement: $1 million
- Minimum capital raise needed: $15 million
The company warns investors that, without a strategic alternative, its operations could be severely impacted. Colabor is currently reviewing all available options and considering leveraging applicable creditor protection laws. Consequently, investors should be aware that their investment’s value could decline significantly.
