McMillan Implements Creative Loaning Structure for the Bank of Nova Scotia & Servus Credit Union

McMillan acted as counsel to the lenders, The Bank of Nova Scotia and Servus Credit Union, in connection with their approximately $30 million loans to Grande Prairie Place Enterprises (1996) Inc. (“GPPE”).

GPPE had significant property development holdings in and around Northern Alberta and the vast scale portfolio had a vital impact on the City of Grande Prairie and on commercial property values in the region.

Substantially, all of the properties were sold and the net proceeds of sale were distributed to the first ranking secured creditors. In light of the liquidation values, a creative structure was required to maximize value. The structure chosen was a junior DIP Loan that ranked behind existing first priority mortgagees.

GPPE, a property management and ownership company, is part of a group of affiliated companies including J.W. Carr Holdings Ltd., Spruce Grove Industrial Park Inc., 272649 Alberta Ltd., 279896 Alberta Ltd., 1170292 Alberta Ltd., and 627612 Alberta Ltd.

McMillan’s national and multi-disciplinary team, led by Adam Maerov and including Kourtney Rylands, Mitch Allison and Nick Barton, demonstrated expertise in generating creative solutions when advising on complex and large restructuring and insolvency matters.

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.