Clover Leaf Seafoods

Clover Leaf Seafoods, a Markham, Ontario-based seafood supplier, obtained protection under the CCAA on November 22. The company is the Canadian affiliate of U.S.-based Bumble Bee, one of North America's best-known consumer shelf-stable seafood companies which commenced Chapter 11 proceedings on November 21. While Clover Leaf's business is cash flow positive and profitable, the balance sheet of the Bumble Bee Group as a whole has suffered under various financial pressures and litigation to which Bumble Bee U.S. is subject. In 2017, the company pleaded guilty to price fixing and was fined US $25.0 million. Civil litigation was also launched against the company by major grocery chains such as Walmart and Kroger. While under creditor protection, the group will launch a stalking horse sales process for the business. Alvarez & Marsal is the monitor. Canadian counsel is Bennett Jones for the company, Osler for the monitor, Blakes for the ABL Agent and ABL DIP Agent, Davies for the stalking horse purchaser, Goodmans for the Term Agent and DIP Term Agent and Torys for the company's private equity sponsor, Lion Capital.