Insolvency and Restructuring
Our expertise
Insolvency imposes difficult choices and requires expert advice to identify the issues and appropriate strategies in a constantly evolving field. Our approach builds on the excellence and expertise of our team members who are consistently recognized as some of the best practitioners in Canada in this field, as evidenced by the cases in which we are involved. The flexible structure inherent in our specialized boutique firm fosters the teamwork that is often the key to success in this field.
Representative Work
Our featured work includes:
In the matter of Bloom Lake, 2021 QCCS 4642, 2022 QCCA 1740, leave to appeal at the Supreme Court of Canada.
Representing the monitor in proceedings under the Companies’ Creditors Arrangement Act in relation to Bloom Lake General Partner Limited and various related entities. Initiated in 2015 and still ongoing, the file raised several important issues, including the recovery of input tax credits and refunds.
North American Lithium Inc., 2021 QCCS 3225
Representing the majority shareholder of North American Lithium Inc. The project under development involves the commissioning of an open pit lithium carbonate mine and processing plant that is expected to produce approximately 23,000 tonnes of lithium carbonate for batteries on an annual basis. The debtor company is currently undergoing a sale or investment solicitation process in the context of the procedures under the Companies’ Creditors Arrangement Act.
Ontario Securities Commission the Bridging Finance entities – dedicated website
Appointed by the Ontario Superior Court of Justice as representative counsel to Quebec unitholders of funds managed by Bridging Finance Inc. in a priority dispute in the context of an eventual distribution to creditors by the receiver appointed under the Securities Act in Ontario.
Groupe Sélection – dedicated website
Appointed by the the Superior Court of Québec to act as representative counsel to all residents of senior homes in connection with Groupe Sélection’s proceedings under the Companies’ Creditors Arrangement Act.
Montréal, Maine & Atlantic Canada Co. (Re) – Monitor’s website
Acted for the court-appointed monitor in the cross-border restructuring proceedings initiated by the MM&A railway company following a catastrophic train derailment in Lac-Mégantic, Québec, which killed 47 people, destroyed the downtown area and resulted in claims by thousands of creditors of over $1B. The claims were settled by the creation of a third-party settlement fund in exchange for a release of liability.
In the matter of the Knightsbridge entities – Trustee’s website
Representing the trustee in the bankruptcy of the Knightsbridge Group entities, the largest developer of LEED-certified residential projects in Quebec with assets of over $50M. This case raises issues of environmental and construction liability.
Bioénergie AE Côte-Nord Canada inc., 2021 QCCS 5734
Representing the temporary lender and the creditor having initiated the proceedings under the Companies’ Creditors Arrangement Act with respect to Bioenergy AE Côte-Nord Canada Inc.
9332-8102 Québec inc. (Re), 2022 QCCS 5078
Representing the trustee in the bankruptcy in obtaining a Mareva-type injunction order to seize the assets of the debtor’s sole shareholder and director, including his cryptocurrency wallets.
Counsel to the Ad Hoc Committee of Senior Term Loan Holders of Cirque du Soleil
Represented an ad hoc group of senior lenders of Cirque du Soleil holding approximately C$1B in senior secured debt.
Nemaska Lithium Inc. (Re) , 2020 QCCS 3218
Represented the bondholders of Nemaska Lithium Inc. which had issued US$350M of secured bonds. The company filed an arrangement proceeding under the Canada Business Corporations Act and subsequently under the Companies’ Creditors Arrangement Act. An agreement was reached whereby the bondholders received the face value of the bonds plus accrued interest and a lump sum payment of US$30M.
9354-9186 Québec Inc. (previously Bluberi Gaming) v. Callidus Capital Corp., 2020 SCC 10
Represented Bentham MFI (now known as Omni Bridgeway) before the Supreme Court of Canada in connection with the landmark decision recognizing the validity of litigation funding in Canada, particularly in an insolvency context.
4519922 Canada inc. (Re), 2015 ONSC 124
Acted for Chrysler Canada Inc. (now FCA Canada Inc.) in its $447M claim for audit negligence against Coopers & Lybrand in connection with the Castor Holdings Ltd. bankruptcy proceedings and the Ontario proceedings under the Companies’ Creditors Arrangement Act to resolve the liability of former partners.
Square Candiac
Co-counsel to parties holding minority interests in a major residential real estate development in Candiac in the context of proceedings under the Companies’ Creditors Arrangement Act.
Les Entreprises Ernest (MTL) Ltée, 2021 QCCS 4911 Represented the Monitor in the proceedings initiated by Ernest Enterprises (MTL) Ltd. under the Companies’ Creditors Arrangement Act in the context of the COVID-19 pandemic.
2295822 Canada Inc. (Re), Paul H. Benjamin (Re) et Gestion Itzamna Inc. (Re), n. 500-11-046917-148
Represented Hachette (Lagardère Group) and several trustees in connection with proposal proceedings, corporate and personal bankruptcies and a multitude of motions to render transaction in connection with the termination of Messageries de Presse Benjamin Inc. operations inoperable. Having obtained an arbitration award and judgments totalling more than $20M against the company and related persons, notably for misrepresenting the company’s solvency in the context of an asset sale, Woods has obtained a Mareva-type order against a complex network of entities and individuals, had one of the bankruptcies recognized in the United States and is overseeing the realization of assets in several jurisdictions.
Arrangement relatif à Ressources Strateco Inc.
Acted for Third Eye Capital in its capacity as interim lender in the CCAA proceedings brought by Strateco Resources Inc. including in the following litigation the taking of its residual assets to satisfy an interim loan of approximately $10M which was used to finance an unsuccessful action for damages against the Attorney General of Quebec following its refusal to authorize the advanced underground exploration phase of a uranium mine.
Michele Bottiglieri Armatore S.p.A.
Obtaining under the Companies’ Creditors Arrangement Act on behalf of a foreign representative a judgment of the Superior Court of Québec in recognition of foreign insolvency proceedings (Italy) in an admiralty matter.
