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NRI Industries starts restructuring process.

Byline: Miles Moore

Auto parts maker and rubber recycler NRI Industries Inc. has begun restructuring proceedings under an order granted by the Ontario Superior Court of Justice.

NRI said it began its reorganization Sept. 6 under the Companies' Creditors Arrangement Act, the Canadian equivalent of Chapter 11 reorganization. The CCAA differs substantially from Chapter 11, however, in that it offers far less guidance on what provisions a corporate reorganization plan should contain. The CCAA also doesn't allow for "cramdown,'' which means a bankruptcy court has the right to enforce a bankruptcy plan over the objections of some of a company's creditors.

Art Power, ...

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