Perativ General Partnership et al., CCAA

Perativ General Partnership et al., a leading automatic teller machine operator in Canada, obtained CCAA protection on July 3, on application by BMO as agent for a syndicate of lenders. The business closures during the pandemic had a negative impact on the companies and their operations. The following two years brought on a severe downtown in operations and adversely affected the financial performance of the companies, with operating losses totaling $25.8 million in 2020, $61.3 million in 2021 and $12.6 million in 2022. After the companies executed an unsuccessful pre-filing SISP, they engaged in discussions with their main shareholder and CEO regarding a potential restructuring of their debt and capital structure. Discussions broke down, and the lenders sought an initial order under the CCAA. Ultimately, the lenders are aiming to conclude a transaction that will provide them with control of the companies, allowing them to right-size the debt structure and appoint an interim CEO while pursuing their operations on a going concern basis. PwC is the Monitor, represented by Fasken. Norton Rose Fulbright is counsel for CIBC, and Cassels is counsel for AF Realizations.

By: Dina Milivojevic