Hubert Kelly once made the top 25 Newsmakers list for his building NexInnovations Inc. into a reselling powerhouse. This year, he makes the list for all the wrong reasons.
The Mississauga, Ont.-based company, which, last year, had $525 million in revenue, is more than $72 million in debt.
According to an affidavit filed in court by CEO Kelly, his application for creditor protection was triggered when Wachovia Capital Finance Corp. (Canada) declared that the VAR was in default under its lending agreements as a result of failing to meet a minimum financial requirement in January.
Unlike most people under creditor protection plans, Kelly has made friends during this time. The company’s top creditors (Wachovia, IBM and Tech Data Canada) have vowed to help the struggling solution provider. Wachovia has taken no steps to enforce its security and, along with IBM, is working with the solution provider in its restructuring, Kelly said.
“I think back in hindsight maybe three years ago, if I made these decisions, maybe we would not be in this situation. This was not the ideal choice. It is a difficult step and I acknowledge it will affect many parties, but in business you make decisions and you live it.”