On August 6, 2019, Jack Cooper Ventures, a Kennesaw, Georgia-based auto hauler and the largest provider of finished vehicle logistics in North America, and 17 of its subsidiaries and affiliates (the “Debtors”) filed for Chapter 11 bankruptcy protection in the Northern District of Georgia (the “US Court”). On August 9, 2019, Justice Hainey of the Ontario Superior Court of Justice (Commercial List) (the “Canadian Court”) granted both an initial recognition order and a supplemental recognition order, granting certain relief in Canada.
On October 11, 2019, the US Court granted a sale order, approving the sale of certain assets to JC Buyer Company, Inc., pursuant to a credit bid by the company’s junior secured lenders. On October 18, 2019, the Canadian Court recognized the US Court’s sale order and approved the sale of the Canadian assets to JC Buyer. The sale approvals allowed JC Buyer to maintain the going-concern operations of the Debtors, including the Canadian subsidiaries.
Cerberus Business Finance Agency, LLC was the first lien term loan lender to certain of the Debtors, and was advised by Cassels as Canadian counsel with a deal team that included Natalie E. Levine, R. Shayne Kukulowicz and Sophie Moher.