South Shore Seafoods Ltd. et al., CCAA

South Shore Seafoods Ltd. et al., a group of Cap-Pelé, New Brunswick-based seafood wholesalers, obtained CCAA protection on September 21, 2023, on application by TD Bank, owed approximately $26 million. Since June 2022, the companies have been in default of several obligations under the credit agreement with TD Bank, including numerous reporting and covenant defaults and, starting in February 2023, borrowing in excess of allowable availability under the borrowing base. TD Bank was no longer prepared to fund the companies outside of a formal insolvency proceeding. It commenced a CCAA proceeding rather than a receivership to allow the market to be thoroughly canvassed for the best chances of preserving the business as a going concern. The companies consented to the CCAA application. Deloitte is the monitor. Counsel is Norton Rose for TD Bank, Cox & Palmer for the monitor, Stewart McKelvey for the companies and TGF for BDC.

By: Dina Milivojevic