Pay Linx suspends CEO; says running out of cash

Pay Linx suspends CEO; says running out of cash

Canadian payments processor Pay Linx Financial has suspended its CEO Ian McNeill after he demanded repayment of a loan. The company says that in the absence of additional funding it only has enough cash to last until Friday.

Pay Linx says McNeill provided funds to the company under a loan agreement dated 13 February to cover payroll and other essential expenses.

But on 6 March he issued a formal 10 day demand for payment of the outstanding indebtedness of $72,360, plus costs.

He's now been temporarily suspended with pay and remains a member of the board. Director Perry Kinkaide has been named interim CEO.

In a statement, the firm warns: "In the absence of further funding from Mr McNeill or other sources, the company presently only has cash available to fund operations until about March 13, 2009. The company continues to seek financing required to continue operations, but there is no assurance that such financing will be secured."

Formed in 2005, Pay Linx is 25% owned by the Royal Bank of Canada, with McNeill holding 34%, according to the company's Web site.

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