CCAA proceedings of ELNA Medical Group Inc. and affiliates

On December 11, 2024, Elna Medical Group Inc. and approximately 40 affiliate entities (collectively, the "ELNA Group") obtained an initial order pursuant to the CCAA. At the time of filing, the ELNA Group had been in operation for 30 years and became a leading Canadian medical clinic consolidator and operator with more than 50 medical clinics and multiple other points of care across 5 provinces, including 10 medical complexes, a laboratory and remote monitoring services and diagnostics. The ELNA Group generated approximately C$200 million of gross revenue per year. Raymond Chabot Inc. was appointed as Monitor, as well as SISP advisor, through an affiliate. 

Pursuant to the restructuring and the SISP that was approved by the Court, 5 major transactions (3 AVOs and 2 RVOs) were identified, approved and closed between February and June 2025, whereby approximately 1,000 physicians and 1,000 employees were continued, as well as 50 medical clinics across 5 Canadian provinces (Quebec, Ontario, Alberta, Manitoba, & Saskatchewan) rendering services to 3 million patients annually, as well as laboratory and remote services. A complex distribution order was issued in July 2025.

Other achievements and notable interesting developments include:

- Approval of a KERP for approx. 15-20 employees;

- Approval of physician retention plan and charge to cover pre-filing amounts owed (approx. $3.6M);

- Negotiations and discussions with three different provincial governmental authorities to maintain services and billing practices;

- Several town-hall meetings and discussions with hundreds of physicians from different Canadian provinces to ensure continued service despite cash-flow challenges and certain unpaid amounts;

- Approval of a temporary stay in favor of the sole shareholder, including regarding certain guarantee proceedings (challenged and upheld at the Court of Appeal);

- Negotiations and closing of 5 major transactions in only 6 months.

McCarthy Tétrault assisted the ELNA Group with a team led by Jocelyn T. Perreault that included Marc-Étienne Boucher, Roxane Fortin-Lecompte (Bankruptcy & Restructuring), Gregory Morin-Maltais (Corporate/Commercial), Myriane Le François and Dominique Grégoire (Labour and Employment).