Robert Chadwick quoted in “Restructuring in a Challenging Economy”, Lexpert Special Edition: Finance and M&A
Excerpt from “Restructuring in a Challenging Economy”, Lexpert Special Edition: Finance and M&A:
Large restructurings were active in 2020, says Robert Chadwick, a Goodmans LLP partner in Toronto, with companies completing their restructurings under the CCAA and the Canada Business Corporations Act. The energy and oil and gas sectors were active. Bonavista Energy, Calfrac Well Services, Source Energy, Just Energy, Bellatrix Exploration and Delphi Energy all completed significant recapitalization transactions last year, says Chadwick.
Sherritt International, Nemaska Lithium and Dominion Diamond also completed major restructuring transactions in mining. Comark Inc., Hertz Corp. and Cirque du Soleil completed major transactions in the retail and consumer areas. The cannabis sector also saw several restructurings and transfers of business operations to new owners. There were also more appeals in restructuring transactions, Chadwick notes. “We see 2021 developing more over time, as the credit markets are open and there is significant liquidity available for companies from a variety of sources,” he adds. “Lack of revenue and earnings and high debt levels will defer some situations into mid-to-late 2021.”
Goodmans’ Chadwick, whose firm has acted in several RVOs, including for Plasco Energy, anticipates that RVOs will use will increase. But, he cautions, “courts must balance prejudice to stakeholders. It’s not a replacement of a plan of arrangement.”
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