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Canadian Law Awards Canadian Law Awards
INSOLVENCY AND RESTRUCTURING DEAL OF THE YEAR
THE INSOLVENCY and restructuring
category reflects a year of major corpo-
rate turnarounds, financial restructur-
ings, and distressed asset acquisitions. In
a challenging economic landscape marked
by inflationary pressures, liquidity crises,
and shi ing market
dynamics, these deals
highlight the legal
and financial expertise
required to navigate
complex insolvencies,
protect creditor in-
terests, and preser ve
enterprise value.
One of the most
significant restruc-
turings of the year was Tacora Resources'
restructuring under CCA A, a highly
complex transaction in the iron ore mining
sector. Tacora, which operates the Scully
Mine in Wabush, Newfoundland, faced
severe liquidity challenges, commodity
price volatility, and significant debt obli-
gations exceeding US$300 million. e
company entered CCAA proceedings and
secured US$250 million in equity financing
from investors, including Millstreet Capital
Management LLC, OSP LLC, Cargill, and
a $100 million bridge financing facility.
Stikeman Elliott, with a team led by
John Ciardullo, Ashley Taylor, and Lee
Nicholson, acted for Tacora. Ryan Jacobs
from Cassels Brock & Blackwell LLP
led the representation for the court-
appointed monitor, FTI Consulting
Canada. Osler advised the noteholder
group Millstreet and OSP, with a team
led by Marc Wasserman and Michael De
Lellis. Goodmans, led by partners Robert
Chadwick, Caroline Descours, and Dan
Dedic, represented Cargill.
A key legal innovation in this restruc-
turing was the reverse vesting transac-
tion (RVO), which preser ved Tacora's
tax attributes (valued at $650 million),
maintained its operating permits, and
ensured the continuation of key supply
and offtake agreements.
The transaction significantly delev-
eraged Tacora's balance sheet, securing
the company's future and stabilizing the
local economy, where Tacora remains one
of the largest employers in the Labrador
West region.
Another major restructuring was
Xplore's $1.8 billion recapitalization,
which reshaped the financial structure of
Canada's largest rural broadband provider.
Xplore, a privately held telecommunica-
tions company, faced unsustainable debt
levels and required urgent financial restruc-
turing to continue providing internet
service to rural and remote communities
across Canada.
Goodmans partners Robert Chadwick and
Bradley Wiffen served as lead legal counsel to
Xplore. Blakes acted as counsel to Stonepeak
Infrastructure Partners, with a team led by
Linc Rogers and Paul Singh. Bennett Jones
acted for the primary creditor in this deal,
while Harvey Chaiton of Chaitons LLP
advised Amynta Surety Solutions.
XPLORE ... FACED UNSUSTAINABLE DEBT
AND REQUIRED URGENT FINANCIAL
RESTRUCTURING TO CONTINUE
PROVIDING INTERNET SERVICE TO RURAL
AND REMOTE COMMUNITIES
