MuscleTech Research & Development Inc. (“MuscleTech”) designed, manufactured and distributed various health and weight loss supplements. MuscleTech operated from premises located in Southern Ontario and distributed its products in the US through major fitness and pharmaceutical retailers.
MuscleTech and companies related to it were defendants in multiple class action and personal injury lawsuits throughout the US, a portion of which was consolidated at the district court level in Southern New York. Our team was retained by MuscleTech to develop a strategy to address the lawsuits. In order to effect a restructuring, MuscleTech commenced a proceeding in Canada under the Companies’ Creditors Arrangement Act. As CCAA Monitor, we sought recognition of the Canadian proceeding as a foreign main proceeding under Chapter 15 of Title 11 of the United States Code, which was the first Chapter 15 proceeding in the US.
We assisted MuscleTech to successfully address all of the claims against it. We prepared valuations of its business and assets which were integral to the mediation process that led to settlements with stakeholders. The outcome of the proceeding was a plan of reorganization filed by MuscleTech which it implemented in both Canada and the US. The MuscleTech business continues to this day.