Fintech firm XTM Inc. — which was hit by a compliance order by the Bank of Canada last month amid concerns about missing money — has now secured creditor protection and a court-appointed monitor.
Following an application from XTM and Everyday People Payments Inc. — firms that operate a platform for administering and distribution tips to employees in the hospitality sector — the Ontario Superior Court of Justice appointed The Fuller Landau Group Inc. as monitor of the firm, with enhanced powers to oversee the company’s merchant fund trust accounts at Digital Commerce Bank.
On Feb. 17, the Bank of Canada issued a temporary order restricting the firm’s operations, citing concerns that “XTM failed to safeguard end-user funds in its possession, and caused a significant shortfall in end-user funds to accrue.”
In a statement, the company said that it pursued the appointment of a monitor “in order to assist in stabilizing the business and allow it to pursue restructuring options.”
“While the company attempted to reach profitability, it depleted its resources and used restricted cash for operating expenses which resulted in an accumulated trust deficit of approximately $18.75 million as at September 30, 2025,” XTM noted.
Now, alongside the appointment of the monitor, the Bank of Canada has revised its compliance order on XTM, allowing it to restart retail payment activities under the oversight of Fuller Landau.
“The managing director is satisfied that, based on the terms of the [initial court order], the AnyDay platform can be operated in compliance with the [legislation] and in protection of the public interest, with the oversight of the court and the appointed monitor,” it said.
Trading in the company’s shares will remain halted on the Canadian Securities Exchange (CSE).
The court order also provides the company with relief from certain reporting obligations under securities legislation and stock exchange rules.
In the meantime, the company has also reached a funding deal that’s intended to give the company “time to stabilize the business, put safeguards in place with respect to merchant and end use funds and to consider restructuring options including potentially going back to court to seek to undertake a sale or investment solicitation process,” in order to maximize recovery for merchants that have suffered losses due to the shortfall.