Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeFinanceNewsJohn Risley’s CFFI heads toward court-supervised sale process amid $1.4-billion debt disputeAn upcoming June 9 hearing is expected to focus on the structure and terms of the proposed sales processLast updated 1 hour ago You can save this article by registering for free here. Or sign-in if you have an account.John Risley is one of Atlantic Canada’s most prominent business figures, known for building companies across seafood, energy and telecommunications. Photo by Aaron McKenzie Fraser/PRNewsFoto/Cunard LineJohn Risley’s CFFI Ventures Inc. is preparing to launch a court-supervised sales process after creditor opposition derailed an earlier restructuring plan that would have handed control of the company’s assets to its largest lender, New York-based HPS Investment Partners LLC.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe proposed sales and investment solicitation process (SISP), which is scheduled to go before the Nova Scotia Supreme Court next month, follows mounting scrutiny over the valuation of CFFI’s assets and its roughly $1.4-billion debt, including about $1 billion owed to HPS.A prior fairness opinion prepared by Ernst & Young Global Ltd. said the original deal was reasonable because CFFI’s assets were estimated at about $367 million, meaning creditors would likely recover no more than that in a liquidation.Breaking business news, incisive views, must-reads and market signals. 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Please try againCFFI initially sought creditor protection in March under Nova Scotia’s Companies Act in an effort to carry out a restructuring plan that would have transferred many of its assets to entities affiliated with HPS.But several creditors, including Risley’s long-time business associate Brendan Paddick and the Canada Revenue Agency, raised concerns about the company’s valuation assumptions, debt calculations and the structure of the proposed transaction.Paddick is suing CFFI over an unpaid $23-million loan, while the CRA said the company owes it roughly $333 million, a claim CFFI disputes.The company later shifted into proceedings under the federal Companies’ Creditors Arrangement Act (CCAA), which provides broader court oversight and allows greater participation from creditors. A formal restructuring plan has not been filed under the CCAA process and CFFI has instead moved toward a formal sales process aimed at testing the market value of its assets.A SISP is typically used in insolvency proceedings to maximize the value of a company or its assets for creditors and other stakeholders. HPS could still emerge as the successful bidder, but the process opens the door to competing offers and broader scrutiny of the company’s valuation.CFFI owns or holds interests in a wide range of companies across various sectors, including interests tied to renewable energy developer World Energy GH2 Inc., marine services businesses under Horizon Maritime Services Ltd., skincare company Skinfix Inc. and several private investment and financing entities, according to court filings.A report by court-appointed monitor FTI Consulting Canada Inc. last week said the company continues to have sufficient liquidity to fund the restructuring process and is projected to have about $6 million in cash by mid-June. The monitor said interim financing is not currently required.The June 9 hearing is expected to focus on the structure and terms of the proposed sales process, including how CFFI’s assets will be marketed.The court last week extended creditor protection for CFFI until June 15 as the company prepares to seek approval for the proposed sales process.Risley is one of Atlantic Canada’s most prominent business figures, known for building companies across seafood, energy and telecommunications. He co-founded Clearwater Seafoods Inc., which was sold in a deal valued at about $1 billion, and Columbus Communications, which sold for US$1.85 billion in 2014. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.