SRx Health Solutions Initiates Restructuring Proceedings under CCAA for its Canadian Subsidiary
SRx Health Solutions (NYSE:SRXH) announced that its Canadian subsidiary, SRx Health Solutions Canada, has initiated creditor protection proceedings under the Companies' Creditors Arrangement Act (CCAA). The company will seek a stay of proceedings and debtor-in-possession (DIP) financing to maintain stability while exploring restructuring options.
The decision comes after careful evaluation of SRx Canada's financial situation. The restructuring may include a potential sale of all or part of the Canadian business through a Court-supervised process. Importantly, the company's U.S. operations, including its Halo subsidiary, will not be affected by the CCAA proceedings, and no U.S. bankruptcy filing is expected.
SRx Health Solutions (NYSE:SRXH) ha annunciato che la sua controllata canadese, SRx Health Solutions Canada, ha avviato procedure di protezione dei creditori ai sensi del Companies' Creditors Arrangement Act (CCAA). La società chiederà la sospensione dei procedimenti (stay of proceedings) e un finanziamento debtor-in-possession (DIP) per mantenere la stabilità mentre valuta opzioni di ristrutturazione.
La decisione arriva dopo un'attenta valutazione della situazione finanziaria di SRx Canada. La ristrutturazione potrebbe includere la possibile vendita di tutto o parte dell'attività canadese tramite un processo supervisionato dal tribunale. È importante sottolineare che le attività statunitensi della società, inclusa la controllata Halo, non saranno interessate dalle procedure CCAA e non è previsto alcun ricorso fallimentare negli Stati Uniti.
SRx Health Solutions (NYSE:SRXH) anunció que su filial canadiense, SRx Health Solutions Canada, ha iniciado procedimientos de protección de acreedores conforme al Companies' Creditors Arrangement Act (CCAA). La compañía solicitará la suspensión de los procedimientos (stay of proceedings) y un financiamiento debtor-in-possession (DIP) para mantener la estabilidad mientras explora opciones de reestructuración.
La decisión se tomó tras una cuidadosa evaluación de la situación financiera de SRx Canada. La reestructuración podría incluir la posible venta total o parcial del negocio canadiense a través de un proceso supervisado por la Corte. Es importante señalar que las operaciones en EE. UU. de la compañía, incluida su filial Halo, no se verán afectadas por los procedimientos CCAA y no se espera ninguna solicitud de quiebra en Estados Unidos.
SRx Health Solutions (NYSE:SRXH)는 캐나다 자회사 SRx Health Solutions Canada가 Companies' Creditors Arrangement Act(CCAA)에 따른 채권자 보호 절차를 개시했다고 발표했습니다. 회사는 절차 중지(stay of proceedings)와 채무자 점유 상태에서의 자금조달(DIP financing)을 신청해 안정성을 유지하면서 구조조정 방안을 모색할 예정입니다.
이 결정은 SRx Canada의 재무 상황을 면밀히 검토한 후 이루어졌습니다. 구조조정에는 법원 감독 하의 절차를 통해 캐나다 사업 전부 또는 일부의 매각 가능성이 포함될 수 있습니다. 중요한 점은 Halo 자회사를 포함한 회사의 미국 사업은 CCAA 절차의 영향을 받지 않으며 미국에서의 파산 신청은 예상되지 않는다는 것입니다.
SRx Health Solutions (NYSE:SRXH) a annoncé que sa filiale canadienne, SRx Health Solutions Canada, a engagé des procédures de protection des créanciers en vertu du Companies' Creditors Arrangement Act (CCAA). La société cherchera à obtenir la suspension des procédures (stay of proceedings) et un financement debtor-in-possession (DIP) pour maintenir la stabilité pendant l'examen des options de restructuration.
La décision intervient après une évaluation approfondie de la situation financière de SRx Canada. La restructuration pourrait inclure la vente éventuelle de la totalité ou d'une partie de l'activité canadienne via un processus supervisé par le tribunal. Il est important de noter que les activités américaines de la société, y compris sa filiale Halo, ne seront pas affectées par les procédures CCAA et aucun dépôt de bilan aux États-Unis n'est prévu.
SRx Health Solutions (NYSE:SRXH) gab bekannt, dass seine kanadische Tochtergesellschaft SRx Health Solutions Canada Gläubigerschutzverfahren nach dem Companies' Creditors Arrangement Act (CCAA) eingeleitet hat. Das Unternehmen wird eine Aussetzung des Verfahrens (stay of proceedings) und eine Debtor-in-Possession-(DIP-)Finanzierung beantragen, um Stabilität zu sichern, während Umstrukturierungsoptionen geprüft werden.
Die Entscheidung erfolgte nach sorgfältiger Prüfung der finanziellen Lage von SRx Canada. Die Restrukturierung kann einen möglichen Verkauf des gesamten oder eines Teils des kanadischen Geschäfts im Rahmen eines gerichtlich beaufsichtigten Verfahrens umfassen. Wichtig ist, dass die US-Geschäfte des Unternehmens, einschließlich der Tochtergesellschaft Halo, von den CCAA-Verfahren nicht betroffen sind und keine Insolvenzmeldung in den USA erwartet wird.
- U.S. operations and Halo subsidiary remain unaffected by the restructuring
- Company will maintain critical aspects of Canadian operations during proceedings
- DIP Financing will provide operational stability during restructuring
- Canadian subsidiary requires creditor protection under CCAA
- Potential sale of all or substantial parts of Canadian business assets
- Financial distress in Canadian operations indicates significant operational challenges
Insights
SRx Health's Canadian subsidiary enters CCAA proceedings while U.S. operations remain unaffected, signaling targeted financial restructuring.
SRx Health Solutions has initiated a significant restructuring move by placing its Canadian subsidiary under CCAA protection (Canada's rough equivalent to Chapter 11 bankruptcy in the U.S.). This protective measure allows the Canadian entity to continue operations while developing a restructuring plan under court supervision.
The Canadian subsidiary will be seeking two critical elements: a stay of proceedings to temporarily halt creditor actions and debtor-in-possession financing to maintain operations during restructuring. This combination provides breathing room while the company explores strategic options including a potential sale of the Canadian business.
The most important aspect for investors to understand is the limited scope of these proceedings. The parent company explicitly states that its U.S. operations—including the Halo pet products subsidiary—will remain unaffected, with no U.S. bankruptcy proceedings expected. This suggests the financial distress is contained within the Canadian operations rather than representing systemic issues across the entire corporate structure.
This targeted approach to restructuring indicates management is taking a surgical approach to addressing financial challenges rather than a complete corporate overhaul. The company's decision to maintain critical aspects of the Canadian business during proceedings suggests they see ongoing value in these operations despite the current financial difficulties.
U.S. operations, including Halo subsidiary, will not be affected by CCAA Proceedings; No U.S. bankruptcy filing expected
TAMPA, Fla., Aug. 12, 2025 (GLOBE NEWSWIRE) -- SRx Health Solutions, Inc. (NYSE American: SRXH) (the “Company”), a leading global health and wellness company, today announced that its subsidiary, SRx Health Solutions (Canada), Inc. (“SRx Canada”) and certain of its subsidiaries has sought creditor protection in Canada under the Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended (“CCAA”) from the Supreme Court of Ontario (the “CCAA Proceedings”).
The decision to seek creditor protection was made in the best interest of its stakeholders after careful evaluation of SRx Canada’s financial situation and all available alternatives following consultation with its legal and financial advisors.
In the CCAA Proceedings, SRx Canada will seek to obtain a stay of proceedings and the approval of debtor-in-possession financing (“DIP Financing”). The stay of proceedings and DIP Financing are intended to provide SRx Canada with the time and stability required to consider potential restructuring transactions and maximize the value of its assets for the benefit of its stakeholders, which may include the sale of all or substantially all of the business or assets of SRx Canada through a Court-supervised sales process. The Company intends to carry on the critical aspects of the business of SRx Canada throughout the pendency of the CCAA Proceedings.
The Company anticipates that neither it nor any of its United States assets, including its subsidiary Halo, Purely For Pets, Inc., will be affected by the CCAA Proceedings and no United States bankruptcy proceedings will be commenced.
About SRx Health Solutions, Inc.
SRx Health Solutions Inc. is an integrated Canadian healthcare services provider that operates within the specialty healthcare industry. The SRx network extends across all ten Canadian provinces, making it one of the most accessible providers of comprehensive, integrated, and customized specialty healthcare services in the country. SRx combines years of industry knowledge, technology, and patient-centric focus to create strategies and solutions that consistently exceed client expectations and drive critical patient care initiatives aimed to improve the wellness of Canadians. For more information on SRx Health Solutions Inc., please visit www.srxhealth.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Further information on the Company’s risk factors is contained in our filings with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Company Contact:
SRx Health Solutions, Inc.
Kent Cunningham, Chief Executive Officer
Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
T: 212-896-1254
Valter@KCSA.com
FAQ
What is happening to SRx Health Solutions' Canadian operations in 2025?
Will SRXH's U.S. operations be affected by the Canadian restructuring?
What are the next steps in SRx Health Solutions Canada's restructuring process?
Is SRx Health Solutions (SRXH) filing for bankruptcy in the United States?
How will the CCAA proceedings affect SRx Canada's operations?
