Johnson, Glen R.
Torys LLP
(416) 865-8146
grjohnson@torys.com
Mr. Johnson focuses on do-
mestic & cross-border secur-
ities off erings & regulation,
and corporate fi nance and
M&A matters. He advises
Canadian issuers, registrants
and other securities industry
participants on a range of
securities regulatory matters.
Katz, Warren M.
Stikeman Elliott LLP
(514) 397-3260
wkatz@stikeman.com
Mr. Katz is a partner special-
izing in corporate fi nance
and M&A. He advises issu-
ers and underwriters on debt
and equity off erings, and acts
for buyers and sellers of both
public and private compan-
ies, including well-known
US private-equity funds.
Kazaz, Charles
Blake, Cassels
& Graydon LLP
(514) 982-4002
charles.kazaz@blakes.com
Mr. Kazaz, an environmental
and mining lawyer, advises
clients in the mining, energy,
manufacturing, industrial
and property development
sectors on permitting,
regulatory compliance
and enforcement, M&A,
mine reclamation and
mining rights issues.
Juneja, Raj
Davies Ward Phillips
& Vineberg LLP
(416) 863-5508
rjuneja@dwpv.com
Mr. Juneja's practice involves
domestic and international
tax planning. He has exten-
sive experience in corporate
reorganizations, M&A,
international tax planning,
corporate fi nance, derivatives
and resource tax, and advis-
ing tax-exempt institutions.
Kauff man, Aubrey E.
Fasken Martineau
DuMoulin LLP
(416) 868-3538
akauff man@fasken.com
Mr. Kauff man acts for
court offi cers, debtors and
creditors on advocacy
matters related to domestic
and cross-border bank-
ruptcy, insolvency and
restructuring proceedings.
He is an IIC director and a
former chair of the OBA's
Insolvency Section.
Keizer, Charles
Torys LLP
(416) 865-7512
ckeizer@torys.com
Mr. Keizer's domestic and
international infrastructure
and energy practice focuses
on administrative and cor-
porate/commercial law
in the energy sectors, and
includes project develop-
ment and regulatory matters
for sector participants.
tion of cash — it's fi nding
something and selling it
off to someone who will
actually build something."
With commodity pric-
es sinking below the level
of the Great Depression,
an increasing number of
companies may be forced
to sell their prized assets
even though they don't
like the valuations.
Some that previously
rebuff ed potential suit-
ors over price may fi nd
that the opportunity has
vanished, says Jay Swartz,
a partner at Davies Ward
Phillips & Vineberg LLP
in Toronto.
"Some people have
frankly missed the boat
on this. ! ey watched
prices drop and they
didn't take off ers they thought were too
low. ! en the off ers were off the table and
companies running out of cash have been
le not knowing what to do."
Swartz points to Cline Mining Corp., a
metallurgical coal producer, as an example
of a company that found it had no inter-
ested buyer.
Coal prices were down for such a long pe-
riod that Cline suspended production at its
key mine in Colorado to conserve cash in
2012 while it pursued strategic alternatives.
No buyer emerged and the bondholders
were le paying to maintain the mine in a
mothballed state.
"! ey fi nally did a plan of arrangement
where they paid a bit to the unsecured
creditors and some others, and took over
100 per cent ownership of the mine," says
Swartz, whose fi rm acted for them. "! ey
recapitalized it and they're just going to sit
on it until the world changes. I think that's
typical of a lot of things that are happening
in this climate."
In the meantime, he says a number of
large American
p r i v a t e - e q u i t y
funds have set up
distressed funds to
focus on resources.
"! ey've raised
billions of dollars.
I'm sure they're go-
ing to go out there
and say: ! is is a
down market, we
can cherry pick as-
sets. I'm sure they're
searching all over
the place and if
they're one of the
few sources of capi-
tal, they'll have a lot
of leverage to nego-
"IN CANADA PEOPLE HAVE
BEEN SAYING THE SKY IS
FALLING IN THE MINING SECTOR
FOR THE LAST FIVE YEARS. IT'S
BEEN MORE LIKE FIVE MONTHS
IN THE OIL AND GAS SPACE.
THEY'RE EARLIER IN THE CYCLE,
BUT IT'S GOING TO HAPPEN.
I THINK THE OIL AND GAS
SPACE IS THE ONE TO WATCH."
– Gordon Chambers, Cassels Brock & Blackwell LLP
DISTRESS-DRIVEN DEALS
|
21
tiate deals."
Chip Johnston, a partner at Stikeman El-
liott LLP in Calgary, says if the tough times
continue, the weaker players that have been
hanging on will inevitably fall away. "I think
you have to fundamentally go through this
Darwinian process."
IT'S NOT JUST juniors and mid-sized
companies getting squeezed by languish-
ing commodity prices. Even the majors and
super-majors are feeling the pinch.
