NRI Industries Inc. (“NRI”) was a vertically integrated manufacturer of parts made from recycled rubber (discarded tires and scrap polymers) used primarily in the automotive and industrial markets. NRI operated from four locations in Southern Ontario and employed approximately 500 individuals at the time its insolvency process commenced. Our team was retained by NRI to review its business plan and assist it to prepare financial projections under various scenarios.
At the time we were retained, NRI’s secured lender had engaged an advisor from a global accounting firm to consider the value of NRI’s business and assets. The advisor projected that the lender would incur a significant shortfall on its advances to NRI.
Following our review of NRI’s business and identification of the reliance on it by many of its customers, including several major North American OEMs, we designed a process to restructure the business under the Companies’ Creditors Arrangement Act (“CCAA”).
Our team led the strategic process and oversaw NRI’s day-to-day operations over a six-month restructuring period. We brought NRI’s stakeholders together and developed a framework for financing and operating the business during the CCAA proceedings. We conducted a sale process for the business targeted at strategic and financial buyers that resulted in a transaction that saved hundreds of jobs and preserved NRI’s critical supply relationships. Recoveries for all stakeholders far exceeded expectations.