McMillan Advises Alvarez & Marsal Canada Inc. in Restructuring of Cyxtera Group of Companies

McMillan acted as counsel to Alvarez & Marsal Canada Inc. (“A&M Canada”) in its capacity as Court Appointed Information Officer in the restructuring of the Cyxtera Group of Companies under Chapter 11 of the Bankruptcy Code and Part IV of the Companies’ Creditors Arrangement Act (“CCAA”).

Cyxtera Technologies, Inc. (“CTI”) and fifteen of its affiliate Debtors commenced voluntary reorganization proceedings pursuant to Chapter 11 in the United States Bankruptcy Court for the District of New Jersey. The U.S. Bankruptcy Court appointed CTI as the foreign representative of Debtor affiliates Cyxtera Canada, LLC, Cyxtera Communications Canada, ULC and Cyxtera Canada TRS, ULC.

On June 7, 2023, the Court of King’s Bench of Alberta granted orders recognizing the Chapter 11 Proceedings as a foreign main proceeding under Part IV of the CCAA and appointed A&M Canada as the Information Officer in the Canadian CCAA recognition proceedings.

On filing, the Cyxtera Group had approximately US $1.02 billion in aggregate outstanding principal of funded debt obligations. Cyxtera Canada had aggregate outstanding liabilities of approximately $200 million and an additional $961 million of contingent guarantee obligations.

McMillan’s multi-disciplinary team, led by Adam Maerov and including Kourtney Rylands, Preet Saini, Beth Riley, and Melanie Cheddi, demonstrated their ability to advise clients on cross-border matters involving complex legal issues such as the roll up of pre-filing secured indebtedness. With McMillan’s expert guidance, substantially all of the Debtors’ business were sold and the proceeds are being distributed in connection with its Plan of Reorganization

McMillan’s Restructuring & Insolvency Group is one of Canada’s leading business insolvency groups. Our highly skilled team includes top-ranked lawyers known for their expertise and creative problem-solving, allowing McMillan to deliver the highest standards of transactional and structuring leadership, and commercial advocacy. We have advised on the restructuring, purchase and sale of businesses in a variety of industries. We regularly work with financially challenged companies, boards of directors, Canadian and US financial institutions, lending syndicates, bondholders, investors, ad hoc and official creditors’ committees, court-appointed officers and major customers and suppliers of insolvent companies. We provide our clients with successful outcomes and comprehensive solutions to the most challenging problems.