BuildDirect.com Technologies Inc. (BuildDirect) successfully completed a financial and capital restructuring under the Companies’ Creditors Arrangement Act.
BuildDirect was granted protection from its creditors under the CCAA on October 31, 2017. On November 3, 2017, an order was granted by the United States Bankruptcy Court, recognizing BuildDirect’s CCAA proceedings. At that time, BuildDirect’s secured debt was approximately $75.0 million and its unsecured debt was approximately $27.9 million.
With the assistance of Fasken, BuildDirect successfully negotiated a capital financing transaction with its key lenders and investors, including Pelecanus Investments Ltd., Lyra Growth Partners Inc., Beedie Capital Partners Fund I Limited and Mohr Davidow Ventures, and developed a CCAA plan of compromise and arrangement (the “Plan”) that received significant creditor support. The Plan was sanctioned by the British Columbia Supreme Court and the US Bankruptcy Court on March 13 and 15, 2018, respectively.
The Plan was implemented on March 22, 2018, and resulted in the restructuring of BuildDirect’s capital structure, the compromise of nearly all of BuildDirect’s secured and unsecured debt and the emergence of BuildDirect from CCAA protection. In connection with the successful completion of the restructuring, BuildDirect closed an equity financing round in the amount of US$43 million (of which, US$28 million is new funding) led by Mohr Davidow Ventures.
Fasken was legal counsel to BuildDirect with a team led by Kibben Jackson (insolvency), and included Gary Ott (corporate/commercial), Geoff Pedlow (corporate/commercial), Brent Lewis (insolvency), Robert Millar (insolvency), Michael Coburn (tax), Ally Bharmal (corporate finance), Fergus McDonnell (insolvency), Richard Berrow (insurance), and Jeff Hernaez (litigation).