Profiles and film extruder CPI Plastics Group Ltd. has begun a financial restructuring program.
Mississauga-based CPI said Nov. 10 it would appoint a financial adviser to represent the firm. It also created a special committee of its board to ensure CPI's stakeholders are represented in the restructuring.
Paul Huston, CPI vice president of legal affairs and general counsel, said in an interview that CPI needs to come up with as much as C$3 million (US$2.4 million) in the restructuring. Several options are being considered, including issuing of warrants or a private placement, he added.
Huston said the firm is being hurt by a slowdown in the housing market, which is affecting sales of its hot-tub components, railing and decking. CPI recorded a net loss of C$2.4 million (US$1.9 million) for its second quarter ended June 30, compared with a loss of C$962,000 (US$767,000) a year earlier.
The company's stock price fell from C$0.10 (US$0.08) per share to C$0.06 (US$0.05) the morning after its financial restructuring announcement. Huston said CPI officials hope to complete the restructuring before years' end.
CPI makes profiles for construction and other applications, bags, and the Rack Sack household trash-management system.
