The online bingo provider Parlay Entertainment Inc. has confirmed that it has appointed BDO Canada Limited to help the company restructure. MPProjects Assets S.A has made an offer to buy most of the company’s assets.

The bingo software company added that it has BDO Canada to be the proposal trustee in the filing of a notice of intention to make a proposal to its creditors with Ontario’s Superior Court of Justice, a requirement of the Canada’s Bankruptcy and Insolvency Act.

As part of the filing, Parlay has agreed to borrow from MPProjects Assets S.A an aggregate amount of up to CAD$500,000 by way of a draw down credit financing to “provide MPProjects with a second ranking charge encumbering the universality of Parlay’s property wherever located.”

Parlay has said that MPProjects has shown an interest in making an offer to buy substantially all of the company assets and has made a payment with BDO of $100,000 to show that it is serious.

The Toronto Stock Exchange issued a trading halt on Parlay shares as the company failed to file the required audited consolidated financial statements by 2nd May. Parlay has suggested it shares may not be traded until such time as the deficiency can be rectified. In the previous statement for 3rd quarter of 2010 the company showed a 15 percent decline in revenues to CAD$0.67m. The company has been struggling as two of the larger customers moved all 80 of its online bingo sites to parent company G2, and NetPlay TV moved to the Playtech platform.

BDO will be assisting Parlay to restructure as the company considers a number of options.