Douglas Channel LNG Partnership Obtains CCAA Protection
Douglas Channel LNG Partnership has been granted creditor protection under Canada's Companies Creditors Arrangement Act (the "CCAA") by the Supreme Court of British Columbia. Douglas Channel had embarked on developing an LNG facility in the Kitimat area of British Columbia which was intended to serve the fast-growing Asian market for liquefied natural gas. At its peak, the intended facility would have processed over 100 million cubic feet of LNG per day. Douglas Channel filed with over $100 million in liabilities and with assets that were valued at less than 25% of that amount. A format for a restructuring plan has not yet been announced. The Monitor in the CCAA proceedings is Grant Thornton Limited. The Court has set December 6, 2013, for a hearing on the extension of Douglas Channel's CCAA protection. Affiliated companies obtaining protection included BC LNG Export Co-operative LLC and DCEP Gas Management Ltd.
Mobilicity Sale Proceedings
Mobilicity, one of Canada's smaller telecommunications companies, recently obtained CCAA protection from the Ontario Superior Court of Justice (Commercial List) after failing to gain regulatory approval for its acquisition by one of Canada's three major telecom companies. The Ontario Court appointed Ernst Young Inc. of Toronto as Monitor in Mobilicity CCAA proceedings. Mobilicity is carrying on business in the normal course during its period of CCAA protection assisted by a $30 million DIP facility. Recently the Ontario Court approved a sale process for substantially all of Mobilicity's business and assets. Interested bidders must be accepted as qualified bidders and must provide a confidentiality agreement by 10 p.m. on December 2, 2013. Mobilicity filed for CCAA protection with over $245 million in secured debt and a relatively small amount of unsecured liabilities.
Fletcher Leisure Group Ltd. Placed in Receivership
Montreal sports and leisure products group, Fletcher Leisure Group Limited ("the Fletcher Group") has been placed in receivership by the Superior Court for the Province of Quebec with liabilities in the range of $30 million. The Receiver is PriceWaterhouseCoopers of Montreal. The Receiver has recently announced an agreement for the sale of the Fletcher Group's business as a result of an auction in the receivership. The order appointing the Receiver also authorized it to seek recognition under Chapter 15 of the United States Bankruptcy Code and an order granting Chapter 15 protection has been obtained from the Bankruptcy Court for the Southern District of New York. The prospective purchaser is Fame Jeans Inc. of Montreal. The Fletcher Group manufactured and distributed leisure and golf equipment, accessories and sportswear under a number of internationally-known brand names.
Materials on Chapter 15
Bruce Leonard participated in the Annual Meeting of the National Conference of Bankruptcy Judges in Atlanta earlier this month on behalf of the American College of Bankruptcy. Bruce's materials included a listing of current articles and comments on procedure and proceedings under Chapter 15 of the United States Bankruptcy Code and a listing of all Chapter 15 cases we have been able to locate. Although no such listings can be exhaustive, we believe that they reasonably complete as at October 2013 and copies are available from Bruce Leonard or any other member of the Cassels Brock Restructuring and Insolvency Group. We would be glad to be pointed to other cases and other articles which could be added to the lists.
Canadian International Restructuring Law Firm of the Year
Corporate INTL, a UK based publication has rated the firm's Restructuring and Insolvency Group as Canada's International Restructuring Law Firm of the Year. We are honoured by this distinction. The award appears in Corporate INTL Global Legal Awards 2013.
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