Duvaltex Inc. et al., CCAA

Duvaltex Inc. et al., a leading North American manufacturer of commercial textiles, obtained CCAA protection on December 14, listing $81.8 million in liabilities, including $18.2 million to Wells Fargo. Based in Quebec City, Duvaltex has approximately 340 employees. Its manufacturing operations are primarily located in Quebec (Beauce) and the US (Maine and Michigan), with the vast majority of its sales (95%) made in the US. The company has suffered major financial difficulties over the last several years, including decreased sales during and after the COVID 19 pandemic, rising production costs and labour shortages, significant carrying costs associated with vacant facilities in Maine, and a significant accumulation of debt from a series of acquisitions and restructuring initiatives. The companies intend to seek recognition of the CCAA proceedings under Chapter 15 of the US Bankruptcy Code. They will use the CCAA proceedings to stabilize operations, seek additional financing or capital, sell excess assets including real estate, and develop a secured debt restructuring plan. Wells Fargo will act as DIP lender. EY was appointed monitor. Counsel is Lavery and Venable for the companies, Stikemans and Otterbourg P.C. for Wells Fargo, Norton Rose Fulbright for the monitor, McCarthys for BDC, Fasken for EDC, Stein Monast for Investissement Québec and Fishman Flanz for Unifi Manufacturing.

By: Dina Milivojevic