December 2, 2009 / 2:59 PM / 9 years ago

UPDATE 1-Brainhunter to file for court protection

* Says accepts stalking-horse bid from CEO

* Proposes to court Deloitte & Touche supervise CCAA

Dec 2 (Reuters) - Canadian staffing company Brainhunter Inc BH.TO said it will voluntarily file for court protection from creditors and has accepted a “stalking horse bid” from Chief Executive Raj Singh.

The stalking horse bid is effectively an offer to acquire the business as a going concern, the company said, adding that it plans to ask the court to approve the bid.

“Brainhunter, like many Canadian companies, has been financially challenged by the general economic downturn,” the company said in a statement.

The decision to file under the Companies’ Creditors Arrangement Act (CCAA) was taken after considerable efforts to recapitalize and reduce overhead costs, Brainhunter said.

The company said it has proposed that Deloitte & Touche Inc be appointed by the court as monitor to provide oversight and supervise the CCAA process.

Brainhunter shares closed at 2.5 Canadian cents Tuesday on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Deepak Kannan) ((; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:

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