MaxLink Canada Inc. in Receivership

Canada’s leading provider of broadband, wireless communication services, MaxLink Canada Inc. and its related companies (MaxLink), were placed in receivership on December 1, 2000, by J.P. Morgan Canada, leaving debts of approximately $150 million. MaxLink had an ambitious business plan to roll out its network in almost every city across Canada and planned to invest approximately $1 billion by 2003. MaxLink was unable, however, to meet its interim business goals, and defaulted on several of its credit agreements with lenders.

In 1996, MaxLink was granted one of three spectrum licenses by Industry Canada to deploy a new wireless technology called local multipoint communication system (“LMCS”). LMCS was referred to as “fibre in the sky”, as it could transmit voice, video, e-mail and interactive applications at the speed and capacity levels of current fibre-optic networks. In 1998, Max- Link became the sole holder of the LMCS licenses in Canada when it acquired WIC Connexus and Regional Vision Inc. for $50 million.

MaxLink is represented by a team from Torys, comprised of David Baird, Q.C., Mario Forte, Gary Solway, Adam Delean and Judy Kim. Ernst & Young Inc. has been appointed receiver of MaxLink and has formed a team led by Stuart Clinton, Brian Denega, John Graham and Sharon Hamilton.

Alcatel Canada Inc., MaxLink’s largest creditor, is represented by Edward A. Sellers, Fred Myers, Daniel Logan and Ajay Singh of Osler, Hoskin & Harcourt LLP. J.P. Morgan Canada is represented by I. Berl Nadler, Matthew Gottlieb and Andrew Welsh of Davies Ward Phillips & Vineberg LLP. L. Joseph Latham of Goodmans LLP is acting as independent counsel to the receiver. Daniel R. Dowdall and Alex A. Ilchenko of Fraser Milner Casgrain have been retained by Cisco Systems Canada Company.