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Adaltis Inc. was granted protection under the Companies’ Creditors Arrangement Act on Friday after announcing that it doesn’t have enough cash to meet its current obligations.

The Quebec Superior Court granted the request from the international in-vitro diagnostic company after a hearing and appointed RSM Richter Inc. as the monitor during the restructuring process.

3-month TSX chart for Adaltis Inc.Adaltis also announced that Victoria Square Ventures Inc. has agreed to provide up to $3 million in debtor-in-possession financing to fund operations during the CCAA proceedings, subject to court approval.

“Adaltis took this decision after thorough consultation with its advisors and extensive consideration of all other alternatives. Adaltis will seek protection under the CCAA as its current cash on hand would not allow it to meet its current obligations,” the company said in a release.

Victoria Square Ventures is already a major backer of Adaltis. Through a combination of shares, warrants and convertible debt, it holds the equivalent of about 35.5 million common shares.

That would translate into up to 31.9 per cent of Adaltis’s outstanding equity or 16.2 per cent if all warrants, options and convertible debt held by all creditors are converted to equity.

Adaltis is headquartered in Montreal. It has offices in China, where it focuses its operations, as well as in Italy, Mexico and other parts of the world.

The company said its operations outside of Canada are not included in the CCAA filing, and that normal day-to-day operations are expected to continue without interruption.

In March, Adaltis reported a loss for 2008 of $41.4 million, or 45 cents a share, compared to a loss of $38.9 million, or 63 cents a share, in 2007.

Shares of Adaltis last traded on June 26 when they closed at 7.5 cents on the Toronto Stock Exchange.

With files from The Canadian Press