Nova Scotia · CCAA
Pre-Filing Report of the Proposed Monitor
Pre-filing report · 12 March 2026
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What we verified from this filing4 verified
- financial positionnote: Certain liabilities, most notably amounts owing to CRA, are disputed. Resulting shareholder deficit was approximately $914.4 million on a balance sheet basis. · page: 7 · as at: 2025-09-30 · basis: CFFI's interim financial statements (unaudited) · scope: CFFI Ventures Inc. (holding company) on a standalone basis — investments in portfolio businesses carried at book value of ~$718.6 million (not consolidated); plus $320.3 million current assets, $62.5 million long-term advances, $67.6 million beneficial investments; liabilities include $1.41 billion current liabilities and $634.8 million related party debt · currency: CAD · total assets: 1183000000 · total liabilities: 2038000000
- secured creditorsnote: Excludes default interest. Original notes issued under Note Purchase Agreement (Oct 23, 2017, A&R Apr 25, 2019) had aggregate principal of US$250 million; interest accrues at 8% cash + 5% PIK, and due to PIK election since 2019 the effective interest rate is 20% (28% as at Sept 30, 2025, before default interest). Facility matured October 23, 2022 and remains outstanding/unpaid; CFFI has been offside covenants since June 28, 2019. Described in the Report as CFFI's 'primary secured indebtedness'. · page: 10 · as of: 2026-02-10 · amount: 776784249 · debtor: CFFI Ventures Inc. · creditor: HPS Investment Partners LLC (as agent) and HPS Secured Creditors (MP III Offshore Master Lux, L.P., Mezzanine Partners III, L.P., AP Mezzanine Partners III L.P.) · currency: USD · security: Amended and restated pledge and security agreement (April 25, 2019) over all present and after-acquired personal property of CFFI and affiliate guarantors, and all capital stock held by CFFI/affiliate guarantors, excluding excluded property
- secured creditorsnote: Table in Report shows $0.00 claimed under the CFFI Guarantee (guarantee not yet called upon) but states underlying facility indebtedness of $30,664,707 as of Feb 10, 2026. HPS agreed to subordinate/postpone its security interest in this collateral to SFPC Quantum per subordination agreement dated May 24, 2022. Mr. Risley has also personally guaranteed the Cormorant Credit Agreement (personal guarantee, related party/beneficial owner). · page: 10 · as of: 2026-02-10 · amount: 30664707 · debtor: Cormorant Utility Services Limited (borrower); secured guarantee from CFFI Ventures Inc. · creditor: SFPC Quantum LP (as lender and agent) · currency: CAD · security: Securities pledge agreement (May 24, 2022) over CFFI's shares in Cormorant, and general security agreement (May 24, 2022) over all CFFI property/undertakings (excluding certain excluded assets), securing CFFI's guarantee of the Cormorant Credit Agreement (senior secured non-revolving term loan of $36.1 million plus delayed draw loan of $5.16 million, original principal)
- secured creditorsnote: Note is repayable on demand, bears interest at 10% per annum, and is personally guaranteed by Mr. Risley (director/beneficial owner family member) — a related party guarantee. · page: 10 · as of: 2026-02-10 · amount: 2102339 · debtor: CFFI Ventures Inc. · creditor: FPR Financial Corporation · currency: USD · security: Pledge agreement securing secured demand promissory note dated October 6, 2023; security is subordinate to HPS