Stoneway: Use Of The CBCA As A Cross-Border Restructuring Tool

Stoneway was advised in its CBCA proceedings by a team including: Kevin Zych, Michael S. Shakra and Joshua Foster (Restructuring & Insolvency); Richard Swan (Litigation); Kristopher Hanc (Capital Markets); Thomas Bauer and Philip Ward (Tax); and Preet K. Gill (Complex Legal Issues and Opinions). 

Introduction

In May 2022, the Canada Business Corporations Act  (CBCA) was used to implement a cross-border and international restructuring of a group of companies (collectively known as Stoneway),¹ whose principal business is the operation of power generation facilities in Argentina. A CBCA Plan of Arrangement was utilized in parallel with a Chapter 11 Plan of Reorganization under the United States Bankruptcy Code, and contained certain unique features in light of the intertwined cross-border proceedings of Stoneway. This case affirms the flexibility of the CBCA's arrangement provision and its utility as a cross-border and international restructuring tool.