Deals Case Studies: Concert Industries Ltd.

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Concert

was successfully restructured through a plan of arrangement pursuant to the CCAA

Monitor under the CCAA
PricewaterhouseCoopers

Issue

The newly built Canadian manufacturing facility experienced significant negative cash flow attributable to start-up difficulties, unfavourable changes in sales product mix and patent disputes. The company was unable to service its funded debt. The Board of Directors wanted time to solve the operating problems before looking for a strategic partner or financial investors.

PwC approach

After obtaining Court protection under the Companies Creditors Arrangement Act (CCAA) and being appointed Monitor, PwC assisted management in securing the support of lenders, customers and suppliers for the turnaround of the new Canadian facility, as well as a corporate-wide reorganization that has included the disposition of Concert’s US manufacturing facility and the downsizing of its management structure. PwC subsequently assisted a financial investor in restructuring Concert's debt and capital through the filing of a plan of arrangement under the CCAA.

Client benefits

Benefiting from the funding and the extensive network of the new investor, Concert has been growing since it emerged from CCAA protection, and its state-of-the-art technology gives it an edge over its competition. The financial investor is proud of its investment; the former secured lenders have increased their recovery as a result of the approach; and, most importantly, the retained employees, suppliers and customers can now count on a thriving business.