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Restructuring & Recovery Experience
Our professional team has led a number of different types of assignments in different capacities in numerous and varied industries. A sample of certain of those assignments is set out below.
Consumer Business – Retail – Automotive After Market Products – Franchising
Acted as CCAA Monitor in proceedings, permitting the company to conduct an orderly restructuring/wind-down of its business. Serving the Canadian market since 1956, the Company was one of the first specialized muffler replacement businesses in North America; having 47 franchise locations and 27 corporate locations across Canada.
Consumer Business – Retail – Book Stores
Appointed as consultant to the Competition Bureau of Canada to evaluate and analyze the profitability of a chain of bookstores contemplated to be sold by a retailer to a competitor in order to assess whether the stores being sold were viable and profitable.
Consumer Business – Retail – Chain of Opticians – Business Investigation
By application of the Attorney General, Province of Ontario resulting from ongoing litigation between the College of Opticians of Ontario, the College of Optometrists of Ontario and the owner(s)/ operator(s) of the stores, the Receiver took possession of certain eye-testing equipment, and reported to the Court on the operations of a 20-store retail chain of optical stores.
Consumer Business - Retail – Department and Family Clothing Stores
As CCAA Monitor, assisted with the development and filing of a restructuring plan to the debtor’s creditors. The debtor was a national retail chain of stores comprising 126 department and family clothing stores in all provinces and territories of Canada except Prince Edward Island and Nunavut and 16 clearance centre stores providing discounted clothing, house wares and grocery items; the company employed 1,860 full- and part-time employees.
Consumer Business - Retail – Giftware
Acted as Court-appointed Receiver of a national giftware business, which engaged independent representatives to sell its products through a catalogue format. The Receiver successfully repatriated a significant quantity of inventory in transport overseas and was able to liquidate it along with inventory warehoused in Canada, collect accounts receivable and sell the brand name. The company’s brand name continues in business today.
Consumer Business – Transportation - Airline
Acted as Consultant to the Canadian government with the mandate of evaluating the fairness and viability of the proposed restructuring plan of one of Canada’s airlines and the reasonability of concessions requested of the government by the airline. Based on the report provided to the government, the requested concessions were granted and the airline was able to be successfully restructured.
Consumer Business – Wholesale – Apparel
As Adviser to the Lender, a financial and operational review of a distributor of low-end apparel to major Canadian retailers was conducted and an assessment of the company’s financial position and the lender’s security position was prepared. This review led to the discovery of ineligible accounts receivable in excess of $1 million that were reported by the company for margining purposes; the disclosure impacted the lender’s exposure and strategy for the workout of the troubled loan.
Financial Services - Limited Market Dealer
Acted as CCAA Monitor of a limited market dealer that was in the business of raising capital from institutional, accredited and minimum amount investors and using those funds to make and administer loans to various businesses and investing in certain businesses. After assisting the debtor with its analysis of the company’s viability and investments, the Monitor assisted the debtor with a self-liquidation process while under CCAA protection. Among the assets was a world-renowned music catalogue and brand name, which the Monitor marketed and sold to one of the world’s largest entertainment companies.
Hospitality – Hotels/Resorts
As Receiver and Manager in excess of 15 hotel/resort engagements, responsibilities included continuing operations (occupancy, food and beverage for restaurants and bars, meeting room/conference centre rentals, oversight of swimming pools, fitness centres, golf courses, tennis courts, boating docks and other recreational facilities), and marketing and sale of the properties.
As Court-appointed Receiver and Manager of three nursing homes, responsibilities included taking possession of the properties, negotiating agreements with various stakeholders including the Ministry of Health and Long-Term Care (Ontario), unions, employees and long-term care management firms, supervising operations, offering the nursing homes for sale and negotiating, as applicable, agreements of purchase and sale.
Long-Term Care/Real Estate – Business Investigation
Engaged by a secured lender to conduct a business investigation of a project experiencing financial difficulty which included an in-depth review of the project's financial position, an assessment of management’s projections, and recommendations to the secured lender.
Manufacturing – Food and Beverage
Brewery Operation with 11 different brands in both package and draft format from its own manufacturing facility – Acted as CCAA Monitor during which operations were reviewed and rationalized allowing the company to continue as a going concern having completed a settlement with its creditors.
Manufacturing - Nautical Engineering and Ship Repair
Acted as Interim Receiver of a nautical engineering and ship repair business, with subsidiaries/divisions in Ontario and Nova Scotia. The interim receivership involved selling the Nova Scotia division and Ontario subsidiary as going concerns, while the Ontario division was liquidated. Realizations achieved from the sales of the company’s assets resulted in full repayment to the company’s first and second secured lenders and partial repayment to the company’s third secured lender. After consenting to act as the company’s Trustee in Bankruptcy, a distribution was also made to the company’s unsecured creditors.
Manufacturing - Pulp and Paper
Acted as CCAA Monitor of a pulp and paper mill in Northern Ontario, which produced supercalendared paper. Assisted the debtor with developing a restructuring plan and cash flows, and participated in critical meetings with the company’s union and the Ontario government regarding required concessions to continue operations.
Manufacturing – Women’s Apparel (dresses/gowns)
Acted as CCAA Monitor for companies which imported and manufactured women’s apparel including dresses, bridal wear and knitwear (some under licensing agreements with designers) which were sold to retail stores across North America. Assisted the debtors with performance improvement, operations rationalization, cash flow projections, negotiations with creditors, and preparation of a plan, leading to their successful restructuring.
Mining – Copper
Acted as Trustee in the bankruptcy of a publicly-traded company with heap leaching expertise that located and developed mines. The Trustee, with the approval of the Court, effected the disposition of the bankrupt company’s ownership interests in various entities in the United States and Mexico.
Mining - Gold Exploration and Development
Acted as Proposal Trustee for a publicly-traded gold exploration company and its subsidiary company. Working with the debtors, the Trustee assisted the companies in compiling their cash flow forecasts, monitored the debtors’ operations and reported to the Court on the status of the companies’ restructuring efforts.
Not for Profit – Charities – Toronto Humane Society (“THS”)
Acted as Special Monitor to the Court to review and report on the financial status of the THS. The reports allowed the Judge to obtain factual material to render a decision on the restructuring of THS.
Not for Profit – Social Housing Projects
Acting on behalf of the Federal/Provincial/Municipal governments in various capacities such as a Receiver and Manager, Consultant and/ or Property Manager in respect of more than 25 distinct and separate properties throughout Ontario. General receivership responsibilities included managing and operating the properties as well as selling, leasing, carrying out capital repairs, conducting or defending legal proceedings and mortgaging and/or transferring the housing projects to other non-profit housing providers.
Real Estate – Commercial Properties
Acted as Receiver and Manager/Liquidator of various commercial properties, including: a) a 700,000 square foot multi-use commercial complex comprised of a 42,000 square foot office building, 400,000 square foot regional shopping centre, a full service hotel with 147 rooms, and a 260,000 square foot parking structure with a 735 car capacity; and b) Prime Commercial Development Lands (39 acres) zoned for commercial/retail development with existing plans for the construction of a 1,090 condominium unit, 2-storey retail mall and retail pads along a major Toronto street.
Real Estate – Residential Properties
Acted as Court-appointed Construction Lien Trustee responsible for completion of residential sub-divisions on three different assignments with more than 180 homes/lots in total, in various stages of development. These assignments involved, among other things, construction management, completing existing sales and new sales, and liaising with construction financing lenders, Tarion Warranty Corporation, trade advisory committees, municipalities, developers, etc.
Real Estate – Shopping Plazas
Adviser to Lenders retained by a syndicate of ten (10) secured lenders to be the special consultant to review the CCAA restructuring of a major Canadian real estate company with shopping plazas/malls across the country to advise on the reasonableness of all cash flow forecasts and assumptions thereunder and future prospects for the borrower as it related to any plan of restructuring proposed by it to its lenders.
Technology – Electronic Medical Records Software
Court-Appointed Receiver of a public company that was the premium supplier of practice enhancing services and electronic medical records software to over 5,000 Canadian physicians. The Receiver operated the business as a going concern and ran a sales process leading to the sale of the business.
Acted as Adviser to the Lender of a publicly listed company which provided integrated logistics and distribution services. As the lender sought to exit its relationship with the borrower, the Adviser monitored the company’s financial position during a five month period (which involved a review of the company’s weekly security margin report and identification of any issues that would potentially impact the lender’s position) while the company sought new financing. At the end of the five month period, the lender was paid out in full and exited its relationship with the company.
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RSM’s Stephen McCourt, national NPO leader, will be providing his insights on ASNPO on January 21, 2019 at CPA Ontario.
RSM’s Sunny Jaggi, senior manager, tax, will be speaking at the GTA Accountants Network about changes to income splitting rules.
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