After six years in existence, Toronto-based mobile solutions provider Phantom Fiber Corporation has become the latest victim of the global economic slowdown after announcing its intention to cease operations immediately.
The publicly listed firm stated that it had received a notice of default from Victory Park Credit Opportunities Master Fund Limited on November 21 regarding a forbearance agreement it had entered into in late-May. The notice alleged the failure of Phantom Fiber to make certain instalment payments of cash due under the terms of the deal.
“The company has been unable to generate sufficient additional cash from operations or through debt or equity financing to satisfy its cash obligations and has also been unable to amend the terms of the agreement with Victory Park,” read a statement to the US Securities and Exchange Commission.
“As such, management believes the company could no longer continue as a going concern.”
The Canadian firm announced that every member of staff with the exception of Jeffrey Halloran, Chief Executive Officer and President for Phantom Fiber, had had their employment contract terminated soon after receiving the notice from creditors.
Phantom Fiber developed wireless platform software that enabled customers to deliver high-performance applications to mobile users across global communications networks. It recently reported that total revenues for the third quarter of 2008 had decreased by 55 percent when compared to the same period last year to $133,252 while user fees and royalties increased by $1,966 to $57,358. In addition, its total operating expenses increased 23 percent from the third quarter of 2007 to $553,547 for the same period this year as it allocated more money into research and development.