Jaymor Capital successfully completes financial restructuring

On December 17, 2015, Jaymor Capital Canada Ltd. (“Jaymor”) successfully completed a financial restructuring. That restructuring cured all defaults under Jaymor’s existing bonds held by over 400 investors, extended the maturity date of Jaymor’s debt and has allowed the company to continue its operations on a solvent basis. Jaymor had been in default of payment of interest for 15 months and it had not repaid the amount owing on its bonds on June 30, 2015, their stated maturity date. Pursuant to a plan of arrangement under the Canada Business Corporations Act, all of the outstanding bonds aggregating $28,526,700 were exchanged for an equal aggregate principal amount of new bonds (the “New Bonds”). The New Bonds are governed by an indenture among Jaymor, as issuer, Jaymor Securities Ltd. and Jaymor USA Inc., as guarantors, and Computershare Trust Company of Canada, as trustee. The New Bonds, which mature on December 31, 2020, bear interest at a fluctuating annual interest rate, based on the amount of New Bonds redeemed by certain milestone dates. An innovative feature of the New Bonds is that they are structured to provide financial incentives to Jaymor to reduce their outstanding amount prior to maturity. A further innovative feature of the New Bonds is that, in the event that there is an acceleration of the New Bonds or they are not satisfied by their maturity date, certain contractual and other rights in relation to the original bonds including as to interest arrears will be restored and available to be enforced. Jaymor was advised in this transaction by a team from Fasken Martineau that included, among others, Jon Levin and Jessica Catton Rinaldi (corporate/securities); Jesse Harper (litigation); and Bill Bies (tax).