RGN-National Business Centers

RGN-National Business Centers was declared a foreign representative of itself and six other debtors-in-possession (collectively, the "Chapter 11 Debtors") under the CCAA on August 24. The Chapter 11 Debtors are subsidiaries of Regus Corporation, which together with its affiliates (collectively, "IWG"), offer a network of on-demand office and co-working spaces in over 1,000 locations in the US and Canada. The Chapter 11 Debtors currently owe approximately $433.0 million to Regus Corporation. IWG, which operates 137 centres in Canada, has been severely impacted by the COVID-19 pandemic. The occupancy rates at its office spaces are significantly reduced and certain clients have had difficulty making payments under their occupancy agreements. To mitigate the effects of the pandemic, IWG has taken various cash flow and liquidity measures, including the deferral of rent payments and engagement with landlords to negotiate forbearances. If these Chapter 11 restructuring efforts prove unsuccessful, the company will have to wind down the operation of applicable centres. KSV was appointed information officer. Canadian counsel is Stikeman Elliott for the company and Bennett Jones for the information officer.