Railpower seeks creditor protection

Railpower 3-month TSX chart

Railpower Technologies Corp. sought creditor protection on Wednesday, saying it doesn't have the cash to meet its current obligations.

The Brossard, Que.-based developer of clean-power locomotives and power plants said the protection application will be heard later today in Quebec Superior Court.

The company said the Ontario Teachers' Pension Plan is its main creditor. Railpower said it is in talks with Teachers and other parties in connection with plans to restructure its operations.

The firm said its day-to-day operations are expected to continue without interruption.

In connection with the court filing, Railpower said Jose Mathieu, its president and CEO, has left the company. Mathieu has also left the company's board of directors.

Richard Laliberte, who has been the company's vice-president of engineering, quality assurance, and product service, has been named as Railpower's chief restructuring officer.