Wisp Internet Services Inc. (“Wisp”) sells high-speed internet services to rural Ontario residents. On August 29, 2019, Wisp filed a Notice of Intention to Make a Proposal to its creditors pursuant to subsection 50.4 (1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended (the “BIA”) and Dodick Landau Inc. was named Proposal Trustee. Pursuant to the provisions of subsection 69 (1) of the BIA a stay of proceedings has been initiated and all proceedings against Wisp are stayed as of the date of filing of the NOI. On September 27, 2019, the Court granted an extension to the stay of proceedings to November 12, 2019 providing Wisp with additional time to formulate its proposal to its creditors.
Wisp continues to operate its business in the normal course providing ongoing internet service to its customers. If a customer is having any technical difficulties accessing its internet it should call Wisp’s customer service line for assistance.
During this extension period, on October 10, 2019, Wisp convened an informal creditor information meeting. At this meeting the Proposal Trustee provided further information about the Proposal process to the creditors, Wisp provided draft terms of its proposal, obtained feedback from the creditors present and responded to creditors’ questions.
On November 12, 2019, Dodick Landau Inc., in its capacity as Proposal Trustee of Wisp, filed with the Official Receiver a proposal in the name, and on behalf, of Wisp. By November 19, 2019 the Proposal Trustee mailed to all known creditors a copy of the Proposal, the Trustee’s Report on the Proposal, a blank proof of claim form with instructions, a form of proxy and a voting letter. These documents are now available for download on this website.
On November 29, 2019, Dodick Landau Inc., in its capacity as Proposal Trustee of Wisp, filed with the Official Receiver an Amended Proposal in the name, and on behalf of Wisp. Wisp’s Amended Proposal includes enhancements to its original Proposal which it agreed to add following receipt of feedback from a number of its creditors.
A meeting of the creditors to consider and vote on the Proposal was held on December 3, 2019 at 11:00 am at the Tyrone Community Centre, 2716 Concession Road 7, Tyrone, Ontario. One additional revision was approved at the meeting of the creditors. At the meeting the creditors voted in favour of the revised Amended Proposal. Approximately 75% in value, and 74% in number, of creditors voting voted in favour of the revised Amended Proposal.
On January 28, 2020 an application was made to the Court to approve the revised Amended Proposal of Wisp which was approved by the creditors of Wisp on December 3, 2019. At the January 28, 2020 hearing the Court approved the revised Amended Proposal.
All creditors who have not yet submitted a proof of claim to the office of the Proposal Trustee may still do so. Please direct all correspondence to the attention of Ms. Brenda McKnight, either by email ([email protected]), fax (416-649-7725) or regular mail (Dodick Landau Inc., 951 Wilson Avenue, Suite 15L, Toronto, ON, M3K 2A7).
OCTOBER 18, 2024 UPDATE
In early 2024 Wisp advised the Proposal Trustee that it continues to have financial difficulties due to continued loss of subscribers and it needs to further amend its Proposal to its creditors. As a result of Wisp’s continued financial difficulties, and following negotiations between Wisp and the purchaser, another internet service provider has made an offer to purchase 75% of Wisp shares and invest in the growth of the business, thereby relieving the financial burden on Wisp. Wisp has therefore filed a Revised Amended Proposal proposing this sale transaction. In order for the Revised Amended Proposal to be implemented, Wisp is required to get the approval of the creditors, then the approval from the Court and then close the sale transaction.
From October 15 – 18, 2024, a creditor package was sent by regular mail, or electronic mail, to all creditors who have submitted a claim in the Proposal proceeding. The creditor package is also available on this page for download. The creditor package includes the Proposal Trustee’s Report on the Revised Amended Proposal, which includes a copy of the Share Purchase Agreement, a copy of the Revised Amended Proposal (including a version with tracked changes against the first approved Proposal so that you can see what has changed). Also included in the Creditor Package is a voting letter.
Once you have reviewed the Creditor Package and you are ready to vote, please complete the voting letter and submit it to the office of the Proposal Trustee by either email, fax ([email protected] OR fax: 1-866-874-1791) or regular mail (951 Wilson Avenue, Suite 15L, Toronto, ON, M3K 2A7). All voting letters must arrive prior to the Meeting of Creditors which will take place on October 30, 2024 at 11:00 a.m. on Zoom videoconference. Alternatively, you may vote at the Meeting of Creditors, however, your vote at the meeting will not be anonymous.
Zoom Link for Meeting of Creditors on October 30, 2024 at 11:00 a.m.: (please copy link to your browser)
https://us06web.zoom.us/j/83275263528?pwd=BvYApmkCNwsqJasv2UjEnpaskUl6Ow.1
Documents