Christian Lachance on CCAA Restructuring for Lexpert

How creditor-led proceedings, sales and RVOs are reshaping restructurings

Christian Lachance was featured in a recent Lexpert article titled “CCAA restructuring evolves as new tools gain ground.” The article looks at how creditor-led proceedings, sales of distressed businesses and reverse vesting orders (RVOs) have become established features of proceedings under the Companies' Creditors Arrangement Act.

Christian notes that creditor-led CCAA is “probably not a trend anymore, and is more an established practice,” and that it is no longer controversial “if it's done with the right factual background.” In his view, the key question is often whether the secured creditor trusts the debtor, its advisers and the proposed restructuring, rather than who files first. He notes that a significant proportion of formal insolvency proceedings now end in some form of sale transaction and that RVOs have moved past being new to being “accepted,” although parties still need to justify why an RVO is a better solution than a conventional vesting order. On releases for directors, Christian says courts will grant them where the monitor and the directors can show that the directors actually worked to improve the outcome of the restructuring.

Read the full article.