#Canada #Toronto #Chesswood Group #CCAA Proceedings #FTI Consulting

Chesswood Group's Sale and Investment Process: An Overview

In a significant move for the financial landscape, Chesswood Group Limited has initiated a Sale and Investment Solicitation Process (SISP) with the oversight of FTI Consulting Canada Inc., acting as the court-appointed monitor. The process aligns with the Companies' Creditors Arrangement Act (CCAA), which governs the restructuring of financially troubled companies in Canada.

The SISP seeks to generate interest in the sale or restructuring of certain assets and operations of the Chesswood Group and its associated companies, including Case Funding Inc., Chesswood Holdings Ltd., and several others collectively referred to as the CCAA Parties. The efforts come as the company aims to stabilize its financial standing and engage potential investors or buyers as part of their recovery strategy.

The commencement of this process was sanctioned by the Ontario Superior Court of Justice on October 29, 2024, through an initial court order, marking the official start of the CCAA Proceedings. Moreover, these proceedings have also been recognized as foreign main proceedings by the U.S. Bankruptcy Court for the District of Delaware under Chapter 15. This dual recognition allows for a more comprehensive approach to navigating the complexities of restructuring operations across borders.

Objectives of the SISP

The SISP aims to solicit proposals for one or more of the following options:
1. Sale of Assets or Business Operations: This could encompass the full or partial sale of assets, allowing for a more strategic disposition of the company's holdings.
2. Investment and Restructuring: Potential stakeholders may consider providing capital, enabling restructuring, recapitalization, refinancing, or any other organizational adjustments necessary to breathe new life into the business.

The court’s approval on December 19, 2024, of the SISP and its related bidding procedures was a crucial step forward, detailing how interested parties can participate and submit offers. This structured approach includes the necessary protocols, such as executing a non-disclosure agreement (NDA) to ensure confidentiality during the bidding process. The Monitor encourages all parties interested in submitting bids to adhere strictly to these guidelines.

Important Dates and Contact Information

All interested bidders are reminded that final binding offers must be submitted no later than 5:00 PM Eastern Time on January 20, 2025, unless further extensions are granted under the SISP terms. For those wishing to actively engage in the process, detailed information and timelines can be accessed via the Monitor’s official website.

For inquiries regarding participation, interested parties can reach out to FTI Consulting Canada Inc. at its Toronto office:

• - Address: 79 Wellington Street West, Suite 2010, P.O. Box 104, Toronto, ON M5K 1G8
• - Email Contacts: Dean Mullett ([email protected]), Richard Kim ([email protected])

A Brief Look at Chesswood Group Limited

Headquartered in Toronto, Canada, Chesswood Group Limited is engaged in specialty finance, encompassing equipment leasing across North America, vehicle financing, and legal sector finance within Canada. The company places a strong emphasis on alternative credit solutions for investors, striving to revitalize its portfolio while enhancing stakeholder value.

Conclusion

The initiation of the SISP marks a pivotal moment for Chesswood Group Limited as it confronts challenges and works toward recovery. Such structured processes not only aim to clear financial hurdles but also prioritize stakeholder engagement and investment opportunities amid ongoing market shifts. Stakeholders are encouraged to act swiftly and utilize this opportunity to be part of a transformative phase for Chesswood and its associated entities.