Beta Brands Completes Restructuring

The Beta Brands group of companies, which manufactures and distributes baked and confectionery goods, completed the restructuring of its senior secured debt in excess of US$33 million on May 2, 2003. Under the restructuring, the senior lenders acquired all the equity of the group’s operating company, Beta Brands Limited, through a court-approved foreclosure on their collateral. The former parent company, Beta Brands Incorporated, has ceased operations.

Beta Brands Limited also negotiated a new revolving credit facility from CIT Business Credit Canada Inc. to finance the group’s working capital requirements on a going forward basis.

The Beta group of companies was represented by Osler, Hoskin & Harcourt LLP, with a team that included Stephen Sigurdson (corporate/commercial), Steven Golick, Tracy Sandler, Robin Schwill, Marc Wasserman and Harvey Garman (restructuring and insolvency), Simon Thompson (tax), Richard Borins, Brian Hilbers and Florence Weinstock (financial services) and Kelly Moffatt (intellectual property).

In Canada the senior lenders were represented by Blake, Cassels & Graydon LLP, with a team that included Susan Grundy, Pamela Huff, Linc Rogers and Amanda Kushnir (restructuring and insolvency), Leslie Morgan (tax), Kim Harle (corporate/commercial) and Minami Ganaha (intellectual property); and in the U.S. by W. Brewster Lee and T.J. Murphy of Choate Hall & Stewart in Boston.

CIT Business Credit Canada was represented by Goodman and Carr LLP, with a team led by Kenneth Rosenstein (business finance) and assisted by Andrew Biderman and Lida Bucyk (business finance).