Rural Internet Provider Xplore Granted Creditor Protection Amid Liquidity Crisis
Xplore Inc., a Canadian rural internet service provider, has obtained creditor protection under the Companies' Creditors Arrangement Act after missing over $8.5 million in interest payments and nearly exhausting its cash reserves. The company will receive $77 million in initial emergency funding to continue operations while it seeks to restructure or sell assets.
Rural internet service provider Xplore Inc. has been granted creditor protection by the Ontario Superior Court under the Companies’ Creditors Arrangement Act as it seeks to restructure or sell assets due to insolvency. The initial stay of proceedings was granted on Wednesday.
The company missed two interest payments totaling more than $8.5 million. Chief restructuring officer William Aziz stated that Xplore was "within days" of exhausting its limited remaining liquidity before the court approval. The company employs approximately 1,100 people and serves hundreds of thousands of customers in rural areas across Canada.
This marks the second time in three years that Xplore has appealed for court protection. In 2024, the company closed a $1.6-billion recapitalization arrangement.
Xplore faces several operational challenges. It has not been able to sell certain spectrum licenses as planned due to a government moratorium on asset transfers in place since 2023. Additionally, delays in building out its fibre-optic network have prevented the company from receiving government subsidies tied to project completion. These issues, combined with increased competition from larger telecom companies and Starlink, have contributed to a 13-per-cent year-over-year decline in Xplore's subscriber base and a drop in earnings. Starlink won a $100-million Ontario government contract for satellite connectivity in 2024, but Premier Doug Ford cancelled the deal last year during trade tensions.
To maintain operations until next February, Xplore will have short-term access to $77 million in emergency funding under a debtor-in-possession facility provided by majority shareholder Stonepeak and other lenders. The company must return to court within 10 days to secure access to the full debtor-in-possession facility worth $154.5 million. FTI Consulting Canada Inc. is acting as monitor for the company.