Canadian Superior

Canadian Superior Energy Inc. filed under the CCAA in Alberta. The filing came after Canadian Superior obtained a second extension (to March 12th) to repay the outstanding amount under a $37.5 million credit line (which had reportedly been recently reduced by $9 million from asset sales). Canadian Superior is a Calgary, Alberta based oil and gas exploration and production company with projects in offshore Trinidad and Tobago, offshore Nova Scotia, western Canada, the U.S. and North Africa. It is a partner with Calgary based Challenger Energy Corp. (who filed under the CCAA in Alberta on February 27, 2009) and U.K. based BG Group plc in the exploration of three wells in offshore Trinidad and Tobago in the area known as Block 5C. Canadian Superior has announced that it will continue to proceed to sell an undivided 25% or larger interest in the Block 5C project.

Magna Entertainment

Magna Entertainment Corp., together with wholly-owned subsidiaries, filed under Chapter 11 of the U.S. Bankruptcy Code in Delaware. Magna announced that on the same day, it obtained a recognition order under the CCAA whereby the Chapter 11 proceeding was recognized as a "foreign proceeding" under the CCAA and a stay was imposed on claims by Canadian creditors (i.e., proceedings cannot be commenced or continued and current proceedings are stayed). Magna Entertainment announced that it had not met financial covenants under its US $40 million credit facility and that its class A shares would be delisted from the Toronto Stock Exchange for failing to meet the Exchange's listing requirements. In the Chapter 11 filing, Magna Entertainment announced that it obtained a 6 month secured debtor-in-possession (DIP) financing facility of $62.5 million from a subsidiary of MI Developments Inc. MI Developments is Magna Entertainment's largest secured creditor and controlling shareholder. Magna Entertainment also announced that it received a stalking horse bid from MI Developments for certain of Magna Entertainment's assets including several race tracks in the U.S. The bid was reported to be in the amount of $195 million and to be payable in the form of $44 million in cash, the assumption of a $15 million capital lease and a $136 credit bid of Magna Entertainment's existing indebtedness to MI Developments. Magna Entertainment is an Aurora, Ontario based company that owns and operates horse race tracks, wagering operations and casinos and a horse racing television network.

Masonite

Masonite International Inc. and several of its affiliates filed under the CCAA in Ontario and Masonite Corporation and all of its U.S. subsidiaries filed under Chapter 11 of the U.S. Bankruptcy Code in Delaware. Under Masonite's announced debt restructuring plan, which Masonite announced had received support from its bank lender and bondholder constituencies, it hopes to reduce its debt by approximately $2 billion (from $2.2 billion currently to $300 million) and to lower its annual cash interest expense by $145 million. Under the proposed plan, Masonite's existing senior secured obligations would be converted on a pro-rata basis (subject to the election of each existing holder) into: (1) a new senior secured term loan of up to $200 million; (2) a new second-lien PIK (payment in kind) loan of up to $100 million; and/or (3) 97.5% of Masonite's (post-reorganization) common stock subject to dilution for warrants issued to senior subordinated noteholders. The senior subordinated notes would be converted into 2.5% of Masonite's common stock and warrants for 17.5% of Masonite's common stock. Masonite is a Mississauga, Ontario based global manufacturer of residential and commercial doors.

Milacron

Milacron Inc. and six of its affiliates filed under Chapter 11 of the U.S. Bankruptcy Code in Ohio. Milacron had annual revenues in excess of $800 million and estimated its liabilities between $500 million and $1 billion in its filing. On the same day, Milacron Canada Ltd. obtained a recognition order under the CCAA in Ontario. Milacron announced that it’s proposed restructuring includes an $80 million DIP term loan facility, a $55 million DIP revolving facility (replacing its pre-filing revolving facility) and the purchase by noteholders of substantially all of its assets. Milacron is an Ohio based global supplier of plastics processing technologies and industrial fluids.

Pacific Energy

Pacific Energy Resources Ltd. obtained a recognition order under the CCAA in British Columbia for its Chapter 11 filing in Delaware on March 9, 2009. In its Chapter 11 filing, Pacific Energy listed its estimated assets and liabilities between $100 million and $500 million. Pacific Energy also announced that it obtained a $44 million DIP facility and has already received initial funding from the DIP lenders. Pacific Energy is a California based oil and gas exploration and production company.

Redcorp

Redcorp Ventures Ltd. and its wholly-owned subsidiary Redfern Resources Ltd. filed under the CCAA in British Columbia. Redcorp and Redfern announced they encountered a funding shortfall in respect of their Tulsequah Mine project in British Columbia and that Redfern was unable to obtain all of its required permits for barge operations by March 1, 2009 (the acquisition of which was linked to obtaining financing under its existing facilities). Redcorp also announced that it applied for a recognition order under Chapter 15 of the U.S. Bankruptcy Code in Seattle and listed in its filing as much as $100 million in assets and as much as $500 million in debt. Redcorp is a Vancouver, British Columbia based mineral exploration and development company with active projects in British Columbia and Portugal.

Smurfit-Stone

The United States Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice issued orders approving a Cross-Border Insolvency Protocol in the Chapter 11 proceedings filed in Wilmington, Delaware by Smurfit Stone Container Corporation and Smurfit-Stone Container Enterprises, Inc. and in the CCAA proceedings filed in Toronto, Ontario by Smurfit-Stone Container Canada Inc.

Cross-Border Insolvency Protocols

A comprehensive list of recent Cross-Border Insolvency Protocols (and copies of protocols) is available from Cassels Brock at http://www.casselsbrock.com/PracticeAreas/ce/custom/Business_Reorganization.