April 3, 2019
Bondfield, a Toronto, Ontario-based construction company with over $1B in current outstanding construction projects for major public-sector institutions across Ontario, obtained protection under the CCAA on April 3. Operating successfully for over 45 years, the company has run into significant financial and operational challenges in the past two years as it has taken on bigger P3 projects. Since August, 2018, the company's surety, Zurich Insurance, has funded the entirety of Bondfield's operations, including overhead, that could not otherwise be funded by ordinary course cash flow. Bondfield applied for creditor protection in early March, but Bridging Finance ("Bridging"), the company's senior lender, requested that the court adjourn the application to allow for a consensual restructuring approach to be agreed upon between Bridging, Bondfield and Zurich. Following extensive negotiations, a CCAA filing agreement was entered into. Under the agreement, Zurich will provide a DIP facility to fund overhead and Bridging will provide a DIP facility to fund certain litigation. EY was appointed monitor. Counsel is Osler for the company, Norton Rose Fulbright for the monitor, Goodmans for Bridging and BLG for Zurich.