Sinobec Group Inc. et al., a Montréal, Québec based leading North American niche aluminum supplier, obtained CCAA protection on May 26.

The Sinobec Group has about 76 employees, 16 distribution centres and warehouses, and five offices in five countries, selling to over 600 customers in the aerospace, transportation, construction and other industries.

As the Sinobec Group’s market success increased, management faced increasing challenges to grow its internal administration function to meet the growth. In addition, due to factors including high interest rates, the current political landscape, global tariffs, reduced customer demand, and a battered aluminum market, the companies’ margins and profitability suffered such that the Sinobec Group is now unable to meet its liabilities without additional funding.

The Sino Group began a refinancing process in June 2024, but given the current economic landscape and global tariffs, the process did not materialize into a transaction.

The purpose of the CCAA is to conduct a SISP, with a syndicate of lenders led by BMO as administrative agent providing a DIP loan. Recognition is also being sought in the US.

PwC is the monitor.

Counsel is Osler for the Sinobec Group and Stikeman Elliott for the monitor.