• About
  • Offices
  • Careers
  • News
  • Students
  • Alumni
  • Payments
  • EN | FR
Background Image
Bennett Jones Logo
  • People
  • Expertise
  • Knowledge
  • Search
  • FR Menu
  • Search Mobile
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
View all
Practices
Corporate Litigation Regulatory Tax View all
Industries
Capital Projects Energy Funds & Finance Mining View all
Advisory
Crisis & Risk Management ESG Strategy and Solutions Governmental Affairs & Public Policy
View Client Work
International Experience
Insights News Events New Energy Economy Series
Business Law Talks Podcast Economic Outlook Class Actions: Looking Forward Quarterly M&A Insights
ESG & the CIO Subscribe
People
Practices
Industries
Advisory Services
Client Work
About
Offices
News
Careers
Insights
Law Students
Events
Search
Alumni
Payments
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
 

Concordia International Corp. Completes US$4 Billion Recapitalization

September 06, 2018

Concordia International Corp. (TSX: CXR), an international specialty pharmaceutical company focused on becoming a leader in European specialty, off-patent medicines, completed the recapitalization of approximately US$4 billion of secured and unsecured debt in September 2018 pursuant to a plan of arrangement under the Canada Business Corporations Act (CBCA).

Concordia operates out of facilities in Mississauga, Ontario and, through its subsidiaries, operates out of facilities in Bridgetown, Barbados; London, England and Mumbai, India. Concordia has sales in more than 90 countries and a portfolio of more than 200 patented and off-patent products, and is listed on the Toronto Stock Exchange.

On October 20, 2017, Concordia commenced proceedings under the CBCA and obtained a “Preliminary Interim Order” from the Ontario Superior Court of Justice (Commercial List). This order provided the company with a stay of proceedings while it continued ongoing discussions with an Ad Hoc Committee of Secured Debtholders and Ad Hoc Committee of Unsecured Debtholders regarding a potential recapitalization transaction to improve its capital structure and reduce the company’s approximately US$4 billion of secured and unsecured debt obligations.

Following extensive discussions and negotiations, on May 2, 2018, Concordia announced its proposed recapitalization transaction supported by the Ad Hoc committees to, among other things:

  • raise US$586.5 million of new capital pursuant to a private placement in exchange for approximately 88 percent of the recapitalized company’s shares upon implementation of the recapitalization transaction,
  • reduce Concordia’s total debt by approximately US$2.4 billion and
  • reduce its annual cash interest expense by approximately US$170 million.

On May 2, 2018, Concordia also obtained from the Court an interim order in its CBCA proceedings authorizing, among other things, the calling and holding of shareholder and debtholder meetings to consider and vote on Concordia’s proposed plan of arrangement pursuant to which the recapitalization transaction would be implemented.

The plan of arrangement was approved by approximately 87 percent of Concordia’s shareholders and 100 percent of Concordia’s debtholders that voted on the plan at the shareholder and noteholder meetings held on June 19, 2018, and was approved by the Court at the final hearing held on June 26, 2018. The recapitalization transaction was completed on September 6, 2018, providing Concordia with an improved capital structure and stronger financial foundation for future growth and success in a competitive industry.

Bennett Jones LLP represented the Ad Hoc Committee of Unsecured Debtholders in Canada with a team that included Kevin Zych and Sean Zweig (restructuring), Kris Hanc (corporate/securities), Thomas Bauer (tax), Dominique Hussey (IP), Steve Lutz and Adam Taylor (financial services).

Key Contacts

  • Kevin J. Zych Kevin J. Zych, Partner
  • Sean  Zweig Sean Zweig, Partner
  • Kristopher R. Hanc Kristopher R. Hanc, Partner
  • Thomas A. Bauer Thomas A. Bauer, Partner
  • Dominique T. Hussey Dominique T. Hussey, Vice Chair and Toronto Managing Partner
  • Adam W. Taylor Adam W. Taylor, Associate

Our Managing Partners on Workplaces Where Women Thrive

Related Links

  • Insights
  • Media
  • Subscribe

Related Expertise

  • Commercial Transactions
  • Financial Services
  • Intellectual Property Law
  • Restructuring & Insolvency
  • Securities Litigation
  • Tax

Recent Posts

In The News

What's the Big Picture in the Canadian Economy?

June 07, 2023
       

Speaking Engagements

Capitalizing Indigenous Business: Towards A Supercharged Canadian Economy

June 02, 2023
       

Client Work

Low-Carbon Energy Leader EDF Issues $500 Million Maple Bond

June 01, 2023
       

Updates

Class Actions: Looking Forward 2023

June 01, 2023
       

Speaking Engagements

Advising Tech-Enabled Startup Companies

May 30, 2023
       

Speaking Engagements

Land Use Compatibility

May 30, 2023
       

Articles

U.S. and Canadian Cross-Border Transactions: U.S. Governing Law and Unique Deal Terms

May 29, 2023
       

Speaking Engagements

Building B.C.'s ESG Advantage

May 26, 2023
       

Articles

ESG: A Catalyst for Economic Development

May 25, 2023
       
Bennett Jones Centennial Footer
Bennett Jones Centennial Footer
About
  • Leadership
  • Diversity
  • Community
  • Innovation
  • Security
  • History
Offices
  • Calgary
  • Edmonton
  • Montréal
  • Ottawa
  • Toronto
  • Vancouver
  • New York
Connect
  • Insights
  • News
  • Events
  • Careers
  • Students
  • Alumni
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
© Bennett Jones LLP 2023. All rights reserved.
  • Privacy Policy
  • Disclaimer
  • Terms of Use
Logo Bennett Jones