Felix & Paul Studios, a Montreal-based immersive-media company, has entered bankruptcy after years of mounting losses, according to a Deloitte trustee report filed on September 10, 2026. The filing disclosed US$34.459 million in liabilities as of July 31, 2026, with revenue failing to keep pace with expenses.
Asset Sale and Creditor Recovery
The company is selling selected space-related assets for US$350,000, a transaction that the trustee said implies only a marginal recovery for secured creditors. The sale process attracted 76 interested parties and resulted in 51 confidentiality agreements, but no binding offer materialized by July 28. A group associated with former shareholders and employees ultimately acquired selected Space Explorers assets, preserving five specialized jobs.
Financial Performance
Financial records show a persistent gap between revenue and losses. Across the reported periods, revenue totaled US$8.644 million, while cumulative net losses reached US$19.218 million. In 2024, revenue was US$2.336 million against a net loss of US$5.488 million. In 2025, revenue rose to US$3.144 million, but the net loss widened to US$7.655 million. For the seven months ending July 31, 2026, revenue was US$3.164 million, with a net loss of US$6.075 million.
Deloitte attributed the collapse to weak receipts from the Interstellar Arc project, a cancelled project, and delays in lunar-mission initiatives. Nearly all 46 employees were dismissed on August 17, 2026.
Secured Claims and Government Lenders
Six secured claims dominate the capital structure, with government lenders providing most of the secured financing. Export Development Canada holds the largest claim at US$6.257 million, followed by Investissement Québec at US$5.773 million, National Bank of Canada at US$3.075 million, BDC Capital at US$2.877 million, Canada Economic Development at US$2.772 million, and SODEC at US$1.437 million. Combined, government lenders' claims exceed US$19 million.
National Bank of Canada (TSE:NA) disclosed a secured claim of US$3.075 million before a subsequent US$900,000 repayment. The exposure is modest relative to the bank's earnings; National Bank reported C$1.307 billion in third-quarter net income and a 13.5% CET1 ratio. Its shares closed Monday at C$214.84, up 0.83%. Analyst sentiment leans cautious, with an average target of C$223.75, about 4.15% above the recent close.
Balance Sheet and Remaining Risks
The balance sheet offered little protection for creditors. Deloitte valued equipment liquidation near zero and leasehold improvements at zero, while calling the US$11.587 million intangible-asset recovery marginal. The US$350,000 deal covers only selected assets and may not close as expected. Recoveries could change as claims are reviewed and remaining assets are sold.
Creditors are scheduled to meet by videoconference on September 28 at 10:00 a.m. EDT. As of now, they lack a confirmed recovery estimate for the estate's remaining property.
