Fortress Global’s secured creditors initiate CCAA proceedings
275.00 Million CAD
In December 2019, our client Deloitte Restructuring Inc. (Deloitte) was appointed super-monitor and receiver for the purposes of the application of the WEPPA in the CCAA proceedings of Fortress Global, which operates a specialty cellulose mill in Thurso, Québec, and an adjacent 24 -megawatt cogeneration facility. Fortress Global’s business focuses generally on the global market for high-value biomass-based products and developing new products from sustainable biomass.
The CCAA proceedings were initiated by two of its secured creditors, Investissement Québec and Fiera Private Debt. As at the date of the filing, the indebtedness totaled approximately C$274 million, including almost C$175 million owed to secured creditors. Deloitte, Investissement Québec, and their legal counsel set up a D&O Trust in the amount of C$1.3 million to provide financial support for the payment of claims against the directors and officers, for the ultimate benefit of Fortress Global’s employees who were almost all laid off following the shutdown of Fortress’ activities at Thurso. Deloitte set up a sale and investment solicitation process, which is still ongoing.
Fortress operates a dissolving pulp business and renewable power cogeneration facility in Thurso, Quebec.
McCarthy Tetrault advises Deloitte with a team led by Alain N. Tardif that includes Pascale Klees-Themens.