Cyxtera Technologies, Inc. et al., a leading global data centre provider of retail colocation, interconnection services and digital exchange services, had its Chapter 11 proceedings recognized under the CCAA on June 7, 2023. The group, which has approximately $2 billion in debt, has 650 employees worldwide, 17 of which are located in Canada. It is facing short-term balance sheet issues primarily due to a significant increase in the inflation and interest rates in the US. Pursuant to a restructuring support agreement with its senior secured lenders, the group seeks to implement value-maximizing restructuring transactions through the timely confirmation and consummation of a restructuring plan. The restructuring plan includes a marketing process and reduction of costs and expenses through the restructuring of the group’s business, including by reducing its data centre lease portfolio, and refinancing material indebtedness. A&M is the Information Officer, represented by McMillan. Gowlings is Canadian counsel and Kirkland & Ellis is US counsel for the companies.

By: Dina Milivojevic