Pélican International inc. et al., a Montréal, Québec-based leader in the paddle sports industry, obtained CCAA protection on March 19 on application by National Bank of Canada as agent on behalf of a group of lenders owed approximately CAD $40 million and USD $63 million.

The company was founded in 1968 and designs and manufactures kayaks, windsurfing boards, canoes, paddle boats, stand-up paddle boards, fishing boats and a variety of camping and water sport accessories. It currently employs almost 300 people, the majority of whom are unionized.

Pélican International initially filed an NOI on February 28. The companies experienced unforeseen growth during the COVID-19 pandemic, but sales have since normalized and resulted in excess inventory and significant operating losses.

The purpose of the CCAA proceedings is to conduct a 3-week going concern SISP, followed by a liquidating SISP if the going concern SISP fails to result in a transaction. The pre-filing lenders are providing a DIP loan.

FTI is the monitor.

Counsel is McCarthy Tétrault for NBC.