Felix Payment Systems' sale to its first lien lenders pursuant to CCAA proceedings

On November 22, 2024, Felix Payment Systems Ltd. ("Felix"), a pre-revenue payment systems technology company, commenced restructuring proceedings, first under the Bankruptcy and Insolvency Act ("BIA"), which was then converted to a proceeding under the Companies' Creditors Arrangement Act ("CCAA"). This was a contentious restructuring, that included a sales and investment solicitation process with a related-party stalking horse bid. The transaction culminated in Court approval of a reverse vesting order effecting a going‑concern sale to the stalking‑horse bidder. Leave to appeal was sought by another related party bidder/investor, and was denied by the British Columbia Court of Appeal. Our team appeared for the petitioner on the key motions and guided the company through stakeholder negotiations and Court attendances to completion, including coordinating with US counsel regarding recognition under Chapter 15 of the United States Bankruptcy Code.

McCarthy Tétrault assisted Felix with a team led by Lance Williams that included Ashley Bowron (Bankruptcy and Restructuring), Patrick Williams, Kyra McGovern, Nico Rullmann (Litigation) and Glynnis Morgan (Business).