Farley Group was a leading Canadian manufacturer of vinyl windows and patio doors focused on the renovation and replacement market. At the time of NewPoint’s engagement, Farley Group was owned by its CEO and two prominent U.S. private equity firms, Sankaty Advisors, the credit affiliate of Bain Capital, and H.I.G. Capital.
As a result of unforeseen operational issues and liquidity problems, the Company’s senior lender put the Company into Special Loans. NewPoint was engaged as exclusive financial advisor by the Shareholders of Farley to assist with a financial restructuring of the Company. After assessing numerous options and in order to preserve the Company’s value for all its stakeholders, Farley sought protection under CCAA. NewPoint, led the process and its officers served as members of the court-appointed Sale and Investor Solicitation Process (“SISP”) Team.
NewPoint played a key role in devising a plan to restructure the business with an appropriate capital structure. New senior and subordinated debt as well as equity financing was raised by NewPoint, which fully repaid the incumbent senior lender and allowed the Company to quickly emerge from CCAA protection in less than three months. The restructuring provided the Company with sufficient capital to continue operations and preserve over 200 jobs in eastern Ontario.
Successful CCAA restructuring provides sufficient capital to continue operations and leads to a timely sale one year later.