Stikeman Elliott's new Guide to Financial Restructuring Alternatives for Canadian Businesses to avoid bankruptcy

MONTRÉAL, May 17, 2021 /CNW/ - The economic impact of the COVID-19 pandemic is leading some businesses to consider the avenues available to them if insolvency becomes inevitable. Several companies in sectors which have been the most impacted by the financial crisis in Canada have taken this opportunity to restructure their business operations as an alternative to bankruptcy.

Stikeman Elliott's Guide to Financial Restructuring Alternatives

Stikeman Elliott's restructuring lawyers have prepared this one-page guide to financial restructuring alternatives for Canadian businesses to help advise them when bankruptcy seems like the only available option. Our professionals work with businesses to outline solutions available for a successful financial restructuring, which include new cash infusions (private placement, rights offering, new senior debt or sales of assets), financial deleveraging (consensual, exchange offer or corporate arrangement) and operational restructuring.

Click here to download our guide to these solutions.

Timing is everything

In all situations, one key asset Canadian businesses must leverage is time. To maximize its options, a business which expects to face financial challenges should begin to consider its alternatives without delay. "It is important to enter into a restructuring with a clear game plan and an understanding of the exit strategies, so as to get in, and get out quickly", explains partner Jean Fontaine. While dealing with financial difficulties is never easy, early identification of a company's financial situation is often the key to successfully implementing measures that will allow it to maximize its options.

Importance of a business' restructuring team

In Québec, the Restructuring & Insolvency Group at Stikeman Elliott is comprised of experienced professionals who have been advising clients for decades, helping them maneuver through financial difficulties by negotiating with lenders and creditors, and, when necessary, by entering a court-sanctioned restructuring process.

Successfully carrying out a restructuring requires a strong management team, as well as a team of seasoned advisors who understand the context and issues, and can identify and implement solutions. "Our first role is to help management come to terms with a difficult and most often unfamiliar situation very quickly, and assist in finding and implementing creative solutions that will allow our clients to preserve their business", explains partner Guy Martel.

Partner Danny Duy Vu adds: "No matter the size of the file, our approach with each of our clients remains the same, which is to provide first-class services and added-value by assisting them in overcoming whatever issue they may face, all in a cost-effective manner".

Stikeman Elliott's restructuring team is national and international in scope

Stikeman Elliott's Montréal restructuring team has built its reputation as a leader in the sector by guiding many of the most noteworthy commercial restructurings in Canadian history to a successful conclusion. Over the past year, the team has successfully worked with businesses in sectors which have been the most impacted by the financial crisis in Canada, such as retail, entertainment, real estate, manufacturing, cannabis, and oil, gas and mining sectors. 

The team is also frequently called upon to act on large international files, collaborating with professionals in foreign jurisdictions. "When a Canadian business is concerned about how a foreign proceeding could affect it, our lawyers' longstanding relationships with leading U.S. and international restructuring advisors are key", according to associate Nathalie Nouvet.

"Our reputation is based on a solutions-oriented approach: when we represent a client in financial distress, we work hard to find an approach that allows the business to continue and, if possible, to exit the process with jobs and equity preserved." adds partner Claire Zikovsky.

Joseph Reynaud, partner, advised a retail client and observes: "For this client's management, it was becoming clear even before COVID-19 that changes in the retail market would require major changes in their business. While a restructuring is never easy, in the end we've been able to get the company into a much better position for the long term."

Recognized as the 2021 Insolvency Law firm of the Year by Benchmark Litigation Canada and the 2020 Insolvency and Financial Restructuring Law Firm of the Year by Best Lawyers in Canada, Stikeman Elliott can provide guidance on navigating the restructuring process.

Are you thinking of restructuring your business? Contact the members of our Montréal restructuring and insolvency team. 

About Stikeman Elliott 

Stikeman Elliott LLP is a global leader in Canadian business law, offering creative solutions to clients across Canada and around the world. The firm provides the highest quality counsel, decisive advice and workable solutions through offices located in Montréal, Toronto, Ottawa, Calgary, Vancouver, New York, London and Sydney. With an exceptional track record on multijurisdictional matters in the U.S. and internationally, Stikeman Elliott ranks as a top firm in its primary practice areas, including mergers and acquisitions, securities, business litigation, banking and finance, competition and foreign investment, tax, restructuring, energy, real estate, project development, employment and labour, and pensions.
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SOURCE Stikeman Elliott LLP