North Mill to Acquire Pawnee Leasing and Tandem Finance

In a significant development in the finance sector, North Mill Equipment Finance is reportedly set to acquire Pawnee Leasing Corporation along with its affiliate, Tandem Finance. This acquisition, as reported by Monitordaily, is a reverse vesting deal that is currently awaiting approval from both the Ontario Superior Court of Justice and a US Bankruptcy Court under Chapter 15 proceedings.

Details of the Acquisition

The decision from the Ontario Superior Court is expected on March 7, 2025, while a hearing in the US Bankruptcy Court is scheduled for later in March. This acquisition is a pivotal step in the restructuring process of Pawnee Leasing’s parent company, Chesswood Group, which is currently navigating through financial difficulties.

Restructuring Under CCAA

The restructuring initiative commenced in October 2024 as Chesswood faced liquidity challenges and defaults on its credit agreements. The court documents indicate that North Mill emerged as the leading bidder during a competitive sale process that attracted interest from multiple parties.

Share Purchase Agreement Signed

A share purchase agreement has been finalized between North Mill and Chesswood’s Pawnee Vendor, which oversees the operations of both Pawnee Leasing and Tandem Finance. The proceeds from this sale are earmarked for repaying Chesswood’s debtor-in-possession (DIP) financing obligations, a crucial aspect of the restructuring process.

Timeline for Completion

The completion of this deal is anticipated by April 18, 2025. This acquisition not only signifies a strategic move for North Mill but also highlights the ongoing challenges faced by Chesswood Group in the current financial landscape.

Implications for the Finance Sector

The acquisition of Pawnee Leasing and Tandem Finance by North Mill could have far-reaching implications for the finance sector, particularly in the equipment leasing market. As companies like Chesswood restructure to overcome financial hurdles, it opens up opportunities for other players in the market to expand their portfolios and strengthen their positions.

Conclusion

As the situation develops, stakeholders and industry observers will be closely monitoring the court proceedings and the finalization of this acquisition. The outcome could reshape the competitive landscape of the equipment finance industry, making it essential for companies to stay informed and agile in their strategies.

The information provided here is intended for general informational purposes only and should not be construed as professional advice. Always seek specialized guidance before making financial decisions.