Plasco obtains creditor protection, 80 jobs terminated

About 80 jobs atPlascohave been terminated after the company obtained a court order to protect itself from creditors followingseveral missed deadlines to secure financingfor a waste-to-energy plant.

The employees will receive one month of severance pay, a spokesperson for the company said.

The company announced Tuesday that it secured the order under the Companies' Creditors Arrangement Actafter it failed to pay a $3.5 million bill earlier this month.

"The company's CCAA proceedings will, among other things, provide the company with time and stability to explore potential strategic alternatives that may be available to the company," Plasco said in a media release.

"Plasco is a pre-revenue, development-stage technology company that requires additional time and funding to refine and commercialize its waste conversion technology," the statement reads.

HoulihanLokey Capital Inc. has been hired to help Plascofind potential buyers or investors.

In the meantime,Plasco management will continueday-to-day operations of the company. Plasco has hired Randall Benson, of KPMG, as chief restructuring officer.

In 2012,the city signed a 20-year, $180-million contract with Plascoto divertresidential wastefrom landfills and insteaduse it to produce electricity.

Plasco has missed three deadlines to secure financing, the most recent of which passed onDec. 31, 2014.

Days later, the cityput out a call for other waste companies capable of handling household garbage.

A staff report on whether or not to sever ties with Plasco in favour of searching for another waste company was released later Tuesdaybut Mayor Jim Watson said ahead of the releasethat "for all intents and purposes," the city's relationship with Plasco is over.

"The staff report that you'll see later today, the recommendation was to cease our relationship with them and move forward with an RFI (request for information) or an RFQ (request for qualifications)," he said.