Mobi724: Richter asks the court to refuse the proposal creditors accepted

Creditors of Mobi724 Global Solutions Inc. accepted its proposal at a meeting on February 26, 2026, per the Trustee's Application to Refuse Approval of the Re-Amended Proposal, Oct. 20, 2026, paras. 4, 6. On October 20, 2026, its trustee, Richter Inc., asked the Superior Court of Québec, Commercial Division, in Montreal, to refuse it. The application, brought under ss. 58 and 59 of the Bankruptcy and Insolvency Act, asks the court to declare that the Re-Amended Proposal dated February 25, 2026 "is in default, is not reasonable and does not benefit the general body of creditors," to refuse to approve it, and to declare that the company is deemed to have made an assignment in bankruptcy under s. 61(a), with provisional execution notwithstanding any appeal. A Richter representative swore the same day that the facts it alleges are true, per the Trustee's Application to Refuse Approval of the Re-Amended Proposal, Oct. 20, 2026, pp. 1, 4–5. Richter also signed, that day, the statutory notice that it will present to the court on November 17 the proposal "accepted by the creditors at a meeting held on the 26th day of February 2026," per the Notice of Hearing to Present the Proposal to the Court (Form 40.1), Oct. 20, 2026.

The proposal offers ordinary creditors $320,000, in two payments of $160,000 on July 1, 2026 and February 1, 2027, under the Re-Amended Proposal, Feb. 25, 2026, s. 6. The company that made it built a platform that, in its own description, uses "proprietary AI-based predictive-analysis" to help banks, card issuers and merchants "increase their transaction revenues and improve the performance and profitability of their card portfolios," per the Application for an Order Approving Interim Financing, Apr. 25, 2025, para. 2. It filed a notice of intention to make a proposal on April 22, 2025, with nine employees at its Montreal head office and Richter as trustee. Three months later the court approved the sale of substantially all its assets to a corporation controlled by its chief executive, and by October the company left behind held, in the trustee's summary of its statement of affairs, no assets of value and $18.674 million of liabilities, per the Report of the Proposal Trustee on the Amended Proposal, Oct. 31, 2025, paras. 5, 19, 24, 30.

A listing, a pandemic and one bid

The company's account of how it got there is in the application for interim financing that its president affirmed on April 25, 2025, three days after the filing. In 2013 Mobi724 Solutions Inc. was bought by Hybrid Paytech World Inc., a Canadian Securities Exchange issuer focused on mobile payment switching and wallet infrastructure, in a reverse takeover that, the company says, gave it access to public capital markets. In 2015 the business took the name Mobi724 Global Solutions Inc. and shifted from transaction infrastructure to "AI-powered solutions for banks, card issuers, and retailers"; in 2018 it moved up to the TSX Venture Exchange. Among the causes of insolvency the company lists are the cost and administrative burden of the listing, which it says was misaligned with its scale; the COVID-19 pandemic, which struck "during its most vulnerable growth phase"; limited capital that restricted its sales; a forced change of auditor in 2023 that delayed its financial statements and led to a cease trade order; its inability to raise working capital; and a Revenu Québec third-party seizure in the hands of one of its principal clients. It had cut its staff from 36 to "a bare minimum of 9 employees," per the Application for an Order Approving Interim Financing, Apr. 25, 2025, paras. 6(g), 10–12, 18, 27, 32. Its unaudited results, as the trustee summarized them, show a net loss of $5.259 million in 2022 on net revenues of $379,000, $2.941 million in 2023 on $1.314 million, and $2.309 million on $773,000 in the first nine months of 2024, per the Report of the Proposal Trustee on the Amended Proposal, Oct. 31, 2025, para. 26.

The company said it sought relief under the BIA to run a sale process by way of a stalking-horse bid "received from certain management personnel," per the Application for an Order Approving Interim Financing, Apr. 25, 2025, para. 8. On May 1, 2025, Registrar Vincent-Michel Aubé authorized it to borrow up to $868,000 from an interim lender, secured by a $1,085,000 interim financing charge ranking first, ahead of a $150,000 administration charge for the trustee, its counsel and the company's counsel; the order also provides that the lender's claims are not to be compromised by any proposal, per the Order, May 1, 2025, paras. 12, 15–16, 21, 25. The company's application described the term sheet's interest as 15% a year on US$325,000, 22% on C$203,000 and 12% on C$200,000, payable at maturity, per the Application for an Order Approving Interim Financing, Apr. 25, 2025, para. 49. Richter's October report calls the lender "a related party," per the Report of the Proposal Trustee on the Amended Proposal, Oct. 31, 2025, para. 22.

Richter launched the sale process on May 14, sending a teaser to approximately 90 entities, strategic buyers in transaction and payment processing and private equity firms, some of them drawn from a 2023 sale effort conducted by an investment firm. Three signed non-disclosure agreements and were given access to the data room. On May 30 a related party submitted a stalking-horse bid; the bid deadline moved from June 4 to June 9, then to June 18 at the request of an interested party that had conducted extensive due diligence. "No other offers were received by the bid deadline." The trustee described the bidder as "the interim financing lender and corporation controlled by" the company's chief executive, and said that because the bid came from a related party it had put "appropriate safeguards" in place, per the Third Report of the Proposal Trustee, July 3, 2025, paras. 16–23.

The price was $1,626,938, paid by assuming liabilities: $905,707 of interim financing, $374,324 owed to a critical supplier and $346,907 of Revenu Québec and Revenue Canada super-priority claims, per the Third Report of the Proposal Trustee, July 3, 2025, para. 24. The supplier was Sherweb Inc., "the host of the trading platform used by the Debtor," per the Fourth Report of the Proposal Trustee, July 18, 2025, para. 20. Registrar Aubé granted the approval and vesting order on July 23, 2025, noting that there was no opposition, per the Approval and Vesting Order, July 23, 2025, paras. 2, 9.

When Richter reported to creditors on October 31, 2025, the transaction had been "closed in escrow" pending payment of professional fees accrued during the proceedings, due by November 15, 2025, and the proposal had been prepared on the basis that the company "no longer holds any assets of value and has ceased all business activities as the Purchaser is continuing the operations." The secured lenders at filing were the Business Development Bank of Canada, at $1.9 million, Investissement Québec, at $3.8 million over two loans, and R&D Capital, at $0.4 million. Richter understood that the purchaser was settling them: BDC was to release its security on receipt of $150,000 and IQ on receipt of $50,000, R&D Capital's debt would be assumed by the purchaser, and a balance of $5.6 million would be treated as unsecured in the proposal. The $18.674 million on the statement of affairs comprised $6.189 million of secured claims, $741,000 of Crown claims, $4.151 million owed to suppliers and others, $6.614 million of convertible debt and $979,000 owed to employees, the last "mainly owed to employees that are continuing their employment with the Purchaser," per the Report of the Proposal Trustee on the Amended Proposal, Oct. 31, 2025, paras. 25, 30–31, 35, 38.