FINOVA Files for Bankruptcy

When The FINOVA Group Inc., a major US asset-based lender with more than US$11 billion in debt, filed under Chapter 11 of the United States Bankruptcy Code in Delaware on March 7, it included its Canadian subsidiary FINOVA (Canada) Capital Corporation in the US filing. The day before, FINOVA Canada’s lenders obtained an interim injunction from Mr. Justice James Farley of the Ontario Superior Court to restrain FINOVA Canada from transferring cash or assets to others in the FINOVA Group and filed a bankruptcy petition against the Canadian company. Through these proceedings, FINOVA Canada’s affairs are under court supervision in both countries.

Susan Grundy, Jim Dube, Milly Chow, Steve Weisz and Linc Rogers of Blake, Cassels & Graydon LLP in Toronto represent the Canadian lenders—The Bank of Nova Scotia, Canadian Imperial Bank of Commerce and Bank of Montreal—in connection with the Canadian proceedings. The Canadian lenders’ US counsel are Howard Beltzer and John Willems of White & Case LLP in New York and Scott Cousins of Greenberg Traurig LLP in Delaware. Bank of Montreal is also advised by Alec Zimmerman and Robin Schwill of Osler, Hoskin & Harcourt LLP. FINOVA is represented by a team led by Jonathan Landers of Gibson, Dunn & Crutcher LLP in New York.