iMarketing Solutions Group Inc. and its subsidiaries (“IMSG”) provided integrated direct marketing solution services for not-for-profit organizations. IMSG and its predecessor corporations operated in the North American telemarketing and fundraising business for more than 25 years.
Due to its high fixed cost structure and increased competition in its sector, IMSG sought protection in Canada under the Companies’ Creditors Arrangement Act and recognition of these proceedings in the US by the United States Bankruptcy Court for the District of Delaware. At the time of its filing, IMSG operated from 15 premises across North America and employed approximately 750 individuals.
As CCAA Monitor, we assisted the Chief Restructuring Officer to conduct a sale process which resulted in a going-concern transaction being approved by the Canadian and US courts. We also developed a methodology to allocate the sale proceeds amongst IMSG’s 23 entities in both countries. The Canadian and US Courts approved the methodology.