Nexii Building Solutions Inc. et al. (“Nexii”), a Vancouver, British Columbia-based designer and manufacturer of high performance and sustainable building products, obtained CCAA protection on January 11, listing approximately $152.6 million in liabilities. Nexii also sought recognition of the CCAA proceedings under Chapter 15 of the US Bankruptcy Code.

Customers of Nexii include the State of New York, Walmart, and Chase Bank. Over $250 million has been raised by Nexii to develop its business, including $100 million owing to its senior secured creditors, being Powerscourt Investments XXV, LP, Trinity Capital Inc. and Horizon Technology Finance Corporation.

Following a period of aggressive growth in 2021, Nexii's revenue grew less than anticipated while costs continued to increase. Despite the implementation of cost reduction initiatives, the increased costs rendered the company unable to meet its obligations to its lenders and facing liquidity issues. Further, Nexii has been dealing with significant changes in the senior management team and is party to litigation in both Canada and the US.

Nexii will use the restructuring process to restructure the board of directors, seek additional funding, implement employee retention policies, and take cost cutting measures. The senior secured lenders will be providing a DIP loan to Nexii during the proceedings.

KSV is the monitor.

Counsel is Fasken for Nexii, Bennett Jones for the monitor, and Aird & Berlis for the senior secured lenders/DIP lenders.

By: Dina Milivojevic