Primus Telecommunications Canada, Inc. (“Primus”) operates across Canada and provides services to over 200,000 residential customers and 23,000 commercial accounts with internet, voice over internet protocol, hosted private branch exchange, local phone, long distance phone and pre-paid calling cards. It also offers wholesale long distance capacity to smaller Canadian telecommunications service providers and provides digital home phone and other telecommunication services in the US.
We were retained by Primus’s lending syndicate. We reviewed and sensitized financial models Primus developed to forecast the restructuring options it was considering.
Primus subsequently commenced a process to identify strategic investors or purchasers for the business, which led to a transaction with a US-based telecommunications company. We advised the Syndicate on all aspects of Primus’s operations, the strategic process it undertook, the transaction and the Syndicate’s projected recoveries. In order to effect the transaction, Primus commenced proceedings under the Companies’ Creditors Arrangement Act and Chapter 15 of Title 11 of the United States Code. The proceedings resulted in a going-concern transaction being approved by the Canadian and US courts.