Groupe ELNA, CCAA

Groupe ELNA, a Montréal, Québec-based leading Canadian medical clinic consolidator and operator, obtained CCAA protection on December 12.

The ELNA Group comprises more than 100 clinics and points of care in five provinces (Québec, Ontario, Alberta, Saskatchewan and Manitoba), including 10 medical complexes (9 of which are in Québec). It employs approximately 1,000 physicians and an additional 1,000 employees and healthcare professionals, serving approximately three million Canadians.

The ELNA Group is Canada’s largest network of integrated medical clinics, diagnostic laboratory services, and remote patient monitoring services. It generates approximately $200 million of annual gross revenue.

Unfortunately, throughout the COVID-19 pandemic, the ELNA Group struggled as a result of diminishing patient visits and suffered material revenue losses, although the laboratory component of the business thrived. These revenues (as well as additional financing) were used to fund acquisitions, including the Medicentres and Brunswick Health Group acquisitions — both turnaround situations which have ultimately resulted in a monthly burn rate of approximately $1.5 million.

The purpose of the CCAA proceedings is to continue a pre-filing SISP funded by a DIP facility provided by National Bank of Canada.

Raymond Chabot is the monitor.

Counsel is Osler for the ELNA Group, McCarthy Tetrault for the monitor, BLG for National Bank of Canada and Spiegel Sohmer for Laurent Amram.