Joriki Inc., CCAA

Joriki Inc., which was in the business of manufacturing and packaging consumer beverages including plant-based beverages, had its NOI proceedings continued under the CCAA on January 28, while Joriki Topco Inc. was added as an applicant.

Joriki operated from three production facilities in Canada (Toronto and Pickering, Ontario and Delta, BC) and one in the US (Pittson, Pennsylvania).

As a result of operational losses and a delay in the completion of the Pennsylvania facility, Joriki developed a turnaround plan which involved obtaining additional financing from its controlling shareholder and concessions from lenders. Unfortunately, in July 2024 the Pickering facility was implicated in a Canada wide recall of Silk and Great Value plant-based beverages as a result of a listeria outbreak, leading to the closure of the Pickering facility and production being paused at the other facilities. Costs increased due to the product recall, a related regulatory investigation and a pending class action.

A syndicate of senior secured creditors including BNS and TD Bank are owed about $192.1 million, while subordinate secured creditor Roynat is owed about $17.3 million.

The purpose of the CCAA proceedings is to pursue transactions for the Toronto and Delta facilities and a liquidation of the Pickering facility. The existing senior lenders are providing a DIP loan.

A&M is the monitor and FTI is the financial advisor the senior lenders.

Counsel is Goodmans for Joriki, Osler for the monitor, McMillan for the senior lenders, McCarthy Tétrault for Danone, Slater Vecchio and LPC Avocats as class counsel, BLG for Elopak, Goldman Sloan for Joriki Holdings, and Gowling WLG for Coca Cola.