Restructurings on the rise in 2008-Companies that need to do it, need to plan ahead: Ogilvy Renault

    TORONTO, Dec. 11 /CNW Telbec/ - The number of restructurings in Canada
should rise in 2008 due to the serious tightening of the credit market,
according to Ogilvy Renault. The tighter market means that when companies have
problems and look for money to solve them, they won't find financing as easily
as they have in the past.
    "The last 7 to 8 years has seen an unprecedented amount of liquidity in
the market," says Derrick Tay, senior partner at Ogilvy Renault and leader of
the firm's insolvency and restructuring practice. "This meant that troubled
companies could easily finance their way out of it-without dealing with their
underlying problems. But those days have come to an end."
    In a tight credit market, lenders will have less of an appetite to extend
more funding to troubled businesses. Instead of just throwing money at
problems, companies will have to deal with them. This should lead to a greater
number of insolvencies and restructurings in the coming years as companies
adapt to the new market reality.
    There may be a bit of a time lag before this begins. Many businesses
still have money from their last financing-the days of unprecedented liquidity
have only recently started coming to an end. Some troubled companies may also
be in denial for a time, unwilling to admit that their operations need a
serious overhaul. This is a mistake, however.
    "In restructurings, the sooner companies confront the issues, the better.
The earlier they plan for a restructuring, the more flexibility and options
they have," says Tay. "If companies wait until they're close to hitting the
wall, then the creditors are in charge."

    About Ogilvy Renault's Insolvency and Restructuring practice

    Ogilvy Renault's insolvency and restructuring lawyers have been involved
in most of Canada's largest and most complex restructurings and insolvencies
in the past decade. Our team has the ability to understand and analyze each
unique situation-and creatively and proactively apply the law to get the
desired results. This is what sets us apart from the competition.

    About Ogilvy Renault

    Ogilvy Renault LLP is a full-service law firm with close to 450 lawyers,
patent and trade-mark agents practicing in the areas of business, litigation,
intellectual property, and employment and labour. Ogilvy Renault has offices
in Montréal, Ottawa, Québec, Toronto, and London (England), and serves some of
the largest and most successful corporations in Canada and in more than
120 countries worldwide. The firm was awarded the Client Choice Award among
all Canadian law firms by International Law Office in 2006. Find out more at

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For further information: or to speak with one of our lawyers, please
contact: Peter Zvanitajs, Senior Advisor - Media Relations, 1-416-216-1871,; Caroline Emond, Senior Advisor - Media
Relations, 1-514-847-4723,

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