A Nova Scotia judge on Friday approved a court-supervised sales process that will allow John Risley's CFFI Ventures Inc. to begin marketing its assets as part of a restructuring involving roughly $1.4 billion in debt, including about $1 billion owed to HPS Investment Partners.
Court Decision and Rationale
Justice John Keith authorized the proposed sale and investment solicitation process (SISP), stating that the company is "buckling under staggering debt" that "far exceeds its financial worth" and that further delays would not be in the interests of stakeholders. He emphasized that the proposed SISP would expose CFFI's assets to the market in an orderly and transparent manner.
Opposition and Rejection
The proposal had been opposed by SFPC Quantum LP, a secured creditor with interests tied to CFFI's stake in Cormorant Utility Services Ltd., which argued that the shares should instead be marketed through a separate standalone process. Keith rejected that approach, noting it lacked a concrete plan and would create uncertainty and delay. He highlighted that FTI Consulting Canada Inc., the court-appointed monitor, supported the broader sales process.
Timetable and Next Steps
CFFI has been operating under the Companies' Creditors Arrangement Act since March. The approved SISP calls for notices of intent to bid by July 21 and binding offers by Aug. 11, with a potential auction the following week. SFPC Quantum requested additional time, proposing deadlines extending into late September, but Keith approved CFFI's proposed timetable and granted the monitor authority to extend deadlines by up to two weeks if necessary.
