Newsletter Article
The CCAA Scene: Recent and Notable - October 2010
Published: 10/14/2010
By Alex Tarantino Abitibi
On September 14, 2010, AbitibiBowater announced that it received approval for its plan of reorganization from unsecured creditors under the CCAA. On September 23, 2010, Abitibi announced that the Quebec Superior Court rendered an order sanctioning Abitibi's plan of reorganization under the CCAA. Regarding Abitibi's Chapter 11 proceedings, Abitibi announced on September 21, 2010 that it received approval for its plan of reorganization under Chapter 11 of the US Bankruptcy Code.
Blockbuster
On September 23, 2010, Blockbuster Inc. filed for reorganization under Chapter 11 of the US Bankruptcy Code. Blockbuster announced that its objective was to reduce its $1 billion balance sheet debt to approximately $100 million and that its senior secured noteholders would receive equity for their debt. The Court authorized Blockbuster to access up to $20 million of DIP financing provided by its senior noteholders and Blockbuster reported it would seek final approval of the entire DIP financing at a future court hearing. The reorganization only pertains to Blockbuster's US operations and stores it wholly owns - international operations (including Canada) and franchises are not included in the filing.
Canwest
On August 13, 2010, Canwest Global Communications Corp. announced that the Competition Bureau (Canada) advised it would not challenge the proposed transaction between Canwest and Shaw Communications Inc. relating to Canwest, Canwest Media Inc. and certain of Canwest's subsidiaries. On September 8, 2010, Canwest announced that the Ontario Superior Court of Justice extended the CCAA stay to November 5, 2010. Subsequently, it was reported that the Canadian Radio-television and Telecommunications Commission investigations have been completed and that Shaw expects to receive a CRTC decision within 35 days. As a result, Shaw elected to extend the outside date for completion of the transaction to December 31, 2010 from September 30, 2010, in accordance with the relevant transaction documents.
Davie Yards
In our March 2010 e-communiqué we reported that Davie Yards Inc. successfully filed under the CCAA in Quebec. On September 15, 2010, Davie Yards announced that it obtained an order from the Quebec Superior Court extending the CCAA stay to October 29, 2010. Davie Yards further announced that it would enter into the qualification process to become one of the two dedicated yards for building large ships in the National Shipbuilding Procurement Strategy.
Tagish Lake
In our August 2010 e-communiqué we reported that Tagish Lake Gold Corp. successfully filed under the CCAA in British Columbia. On September 9, 2010, Tagish Lake announced that the CCAA stay was extended to November 3, 2010.
Winalta
In our August 2010 e-communiqué we reported that Winalta Inc. successfully filed under the CCAA in Alberta. On September 21, 2010, Winalta announced that it entered into a Third Extended and Amended Forbearance Agreement with HSBC Bank Canada, its secured creditor, to extend the forbearance expiration to October 31, 2010. Winalta further announced that its major shareholder agreed to provide HSBC with a limited secured guarantee in respect of Winalta's obligations to HSBC and that Winalta completed a $12.3 million sale of the Winalta Acheson manufacturing facility. On September 26, 2010, Winalta announced that the Court of Queen's Bench of Alberta extended the CCAA stay to October 31, 2010. Winalta, together with certain of its subsidiaries, was also permitted by the Court to file a Plan of Arrangement to be presented to creditors on October 14, 2010.
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