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Ernst & Young Inc. in the CCAA matter of VBI Vaccines

Date Closed

January 3, 2025

Lead Office

Montréal

On July 30, 2024, VBI Vaccines Inc. and its affiliates ("VBI") commenced restructuring proceedings under the Companies' Creditors Arrangement Act ("CCAA") and Ernst & Young Inc. was appointed Monitor by the courts, pursuant to an order issued by the Superior Court of Ontario (the “Court”). The proceedings were thereafter subject to cross-border recognition proceedings, both in the United States and in Israel. 

On October 24, 2024, VBI, as well as certain of its subsidiaries, entered into an acquisition agreement with K2 VBI Equity Trust, LLC (the "Purchaser"), an entity affiliated to the secured lender. Pursuant to the Acquisition Agreement, the Purchaser will acquire all or substantially all of the assets of VBI and its subsidiaries. 

On October 31, 2024, the Court also issued an approval and reverse vesting order pursuant to which the Court approved the transaction. Such order was subsequently recognized in the United States by the United States Bankruptcy Court for the District of Delaware on November 20, 2024, and is in the process of being recognized in Israel under relevant provisions of The Israeli Insolvency and Economic Rehabilitation Law, 2018. This deal closed on January 3, 2025

McCarthy Tétrault assisted the Monitor with a team led by Alain Tardif that included Trevor Courtis, Marc-Etienne Boucher and Meena Alnajar (Bankruptcy and Restructuring) and Philippe Leclerc (Corporate).

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