24 LEXPERT
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2016
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WWW.LEXPERT.CA
Kukulowicz, R. Shayne Cassels Brock & Blackwell LLP
(416) 860-6463 skukulowicz@casselsbrock.com
Mr. Kukulowicz is the head of the firm's Restructuring and Insolvency Group.
The focus of his practice is on commercial restructurings, receiverships and
bankruptcies. He has significant expertise in cross-border restructurings and
liquidations, formal and informal corporate reorganizations, as well as security
enforcement and creditor remedies.
Kravitz, Neil Davies Ward Phillips & Vineberg LLP
(514) 841-6522 nkravitz@dwpv.com
Mr. Kravitz is a partner in the Capital Markets, M&A, Corporate/Commercial,
Governance and Private Equity practices, and is the coordinator of the
Montréal Capital Markets Group. A recognized leading lawyer in M&A,
securities law and cross-border transactions, he is relied upon by clients
for significant transactions, financings, governance and commercial matters.
King, Richard J. Osler, Hoskin & Harcourt LLP
(416) 862-6626 rking@osler.com
Mr. King is Co-Chair of Osler's national Regulatory, Environmental, Aboriginal
and Land (REAL) group. He has extensive experience representing clients on
regulatory and Aboriginal consultation matters related to large energy, mining,
and other infrastructure projects. He also advises clients on environmental
issues associated with commercial transactions and environmental
compliance matters.
Kerbel, Jeffrey Bennett Jones LLP
(416) 777-5772 kerbelj@bennettjones.com
Mr. Kerbel practises in business and securities law, focusing on public and
private M&A, corporate governance, shareholder activism, public and private
financings and securities regulatory matters. He is an immediate past Chair of
the International M&A Joint Venture Committee of the Section of International
Law of the American Bar Association.
Keough, Loyola G. Bennett Jones LLP
(403) 298-3429 keoughl@bennettjones.com
Mr. Keough is a partner in the firm's Regulatory/Environmental Department.
He has particular experience in oil, gas, electricity, LNG, rates, facilities
and environmental matters. His clients include utilities, buyers, producers,
shippers and banks.
Kent, Andrew J.F. McMillan LLP
(416) 865-7160 andrew.kent@mcmillan.ca
Mr. Kent is the Co-Chair, Financial Services and Restructuring Groups.
He practises business law with a focus on corporate restructuring and
financing. He is recognized nationally and internationally both as a leading
Canadian banking practitioner and as one of Canada's pre-eminent
restructuring practitioners.
LEXPERT RANKED LAWYERS
mediate oil was trading in June 2014 in the $100 US
range is in good shape. But with oil down 70 per cent
since those 2014 highs, a borrowing base redetermina-
tion would show fretting bankers their collateral in that
company is worth just $30 million now — not enough
to cover their $50 million in loans. When a borrow-
ing base is set lower by creditors, "Borrowers," explains
Bourassa, "are effectively required to pay down their
credit to below that (new) base in order to stay onside
their credit facility."
Such check-ups on the shrinking value of the assets
held by many oil & gas companies – especially weaker
juniors and midcaps – could well conclude with a diag-
nosis of insolvency and a prescription for bankruptcy in
the coming months.
In Distress
Corporate lawyers in Canada specializing in oil and
gas are seeing increasingly strong signals so far in 2016
that lenders – finally convinced $30-range oil is likely
the new norm the next few years – are now pressuring
companies having increasing difficulty covering their
debts to seek protection under the federal Companies'
Creditors Arrangement Act (CCAA).
at gives them time to restructure their financial af-
fairs under the watch and guidance of an independent
court-appointed monitor and try to pay off creditors
as best they can. (Companies must owe more than $5
million to use the CCAA, which automatically grants
them 30 days to restructure, though the court can give
more time.)
When lenders did redeterminations in the fall of
2015, recalls Bourassa, they "were fairly generous." Few
expected oil prices to go and stay as low as they did.
Rather than nudge companies with a credit shortfall to
consider the drastic option of filing under the CCAA,
they amended credit covenants and eased their loan
agreements. But now, says Bourassa, companies are
more offside their credit facilities than ever. Lenders are
under increasing internal and regulatory pressure to re-
cover their loans.
e most likely way for a failing company to pay off
"You get better title [under
the Companies' Creditors
Arrangement Act or Canada
Business Corporations Act
processes]. You get a cleaner
result. In a regular M&A or
purchase transaction, you get
the company with all the warts.
And even good companies
have warts."
- RICHARD ORZY, BENNETT JONES LLP
