Shaw-Almex Industries Limited et al., CCAA

Shaw-Almex Industries Limited et al., a Stoney Creek, Ontario-headquartered group of companies in the business of providing conveyor belt vulcanizing equipment technology, services and expertise, had their NOI proceedings continued under the CCAA on May 13.

While the business has been successfully operating for over 70 years, the companies have experienced significant financial and operational challenges over the past 24 months that have caused an acute liquidity crisis. These challenges include significant issues securing a new reliable supplier of rubber, increased operational costs due to external market factors, insufficient financial reporting and controls overseen by the former CFO, and losses suffered as a result of currency hedging transactions.

The companies filed an NOI on March 29 to pursue a restructuring with a focus on implementing a SISP. Given the international nature of their business (with 15 locations and customers across 123 countries worldwide), the companies have now continued their NOI proceedings under the CCAA to stabilize their local and international operations and preserve the optionality of filing international recognition proceedings, if necessary.

FTI is the monitor.

Counsel is Reconstruct for the company, Stikeman Elliott for the monitor, Dentons for RBC, DLA Piper for BDC Capital, and Blaney for BDC.