Confederation Treasury Services Limited (“CTSL”) was the treasury arm of Confederation Life Insurance Company (“CLIC”), a Canadian life insurance company that had significant operations in Canada, the US and the UK. CLIC is the only Canadian life insurance company to have required formal restructuring proceedings.
Our firm was appointed as financial advisor to the Noteholders committee of CTSL during the period when CTSL was an applicant under the CCAA. The mandate of the financial advisor was to review CTSL’s financial position, investigate transactions between CTSL and its affiliated entities and advise the Noteholders committee on the plan of arrangement by CTSL. The CTSL plan of arrangement was rejected by the CTSL creditors and the Noteholders brought an application for CTSL to be placed into bankruptcy and for our firm to be appointed as Licensed Insolvency Trustee. The Trustee’s main area of activity was defending legal actions brought by the regulator in the US and the administrators of the CLIC affiliate in the UK. The outcome in the CTSL bankruptcy was that all creditors received full repayment of their admitted claims, together with all statutory interest.