Evenco has not been able to replenish its coffers despite international hacks and contracts obtained from famous clients. Unable to attract a new investor, the young Quebec did not have a shot, which seemed to be on the rise: bankruptcy was inevitable.
Posted at 6:00 AM
This is how David Arsenault, founder and former president of the specialist in heavy vehicle electrification, summed up the disaster for the company founded in 2006, Friday, during a meeting of creditors. Nearly $16 million in public funds are at stake.
Our sales weren’t generating enough cash to support our business. We had to find another outside investor.
David Arsino, founder of Evenco
It was the first time Mr. Arsinoe’s version of events had been heard since the company went bankrupt last month. Before venting the termination of the company’s activity, Journalism He tried several times to talk to Mr. Arsino but to no avail.
Effenco offered a hybrid electric solution intended for heavy-duty professional trucks, such as those for garbage or recyclables. This technology allows the engine to be turned off when the vehicle is stopped while still providing auxiliary systems, such as hydraulic tippers. This operation convinced the multinational corporation Derichebourg, as well as the charm of New York City. The company was also based on a 100% electrical solution, which required investments.
Last fall, Evenco strengthened its relationship with the French waste removal giant to convert 60 of its heavy duty trucks. It had 37 employees at the time of switching to Bankruptcy and Insolvency Law.
At the time of filing for bankruptcy, Effenco’s receivables were 17.5 million. The main creditors are Investissement Québec (IQ), the financial arm of the state of Quebec, and BDC Capital, which is part of the Business Development Bank of Canada – Crown Federal Corporation. The two organizations were also the largest contributors.
According to Mr. Arsenault, IQ and BDC Capital have also refused to grant temporary funding to his business due to his deteriorating situation. However, he did not elaborate. Therefore, it is impossible to know why no other investor would be interested.
“We needed an extra cash injection,” he said. It can only be submitted by existing shareholders who have decided not to. So the board of directors chose bankruptcy. »
To our knowledge, delays surrounding the renewal of the Écocamionnage programme, which supports companies that adopt green technologies, have also contributed to the weakening of Effenco. The procedure expires on March 31, 2021, and the procedure was renewed last December. The uncertainty would have pushed many potential clients to stay on the sidelines, which would have been hurting Effenco.
Millions are at risk
Over time, Quebec paid about $10.5 million to Effenco through financing and loan rounds. The company also owes $5.5 million to BDC Capital.
It is unlikely that secured creditors will be able to recover all the money invested. According to the report submitted on Friday by MNP, the trustee in the file, the value of the company’s assets was estimated at 6.6 million. The liquidation process is underway in the hope of finding buyers for patents, inventory, and equipment. Bids must be submitted by May 27.
Indicated “there is benefit, but no offers yet” Journalism Guardian Pierre Marchand.
IQ did not want to disclose how much could be written off. Its spokeswoman, Isabel Fontaine, said in an email, “It will be necessary to wait for the assets to be sold. […] To see how Investissement Québec can recover.”
- Evenco has offices in four countries: France, the United States, Norway and Canada.