ELNA Medical Group seeks creditor protection amid financial crisis

In Montreal, on December 11, 2024, ELNA Medical Group announced that it had filed for creditor protection under the Companies' Creditors Arrangement Act (CCAA). This decision by the Company was approved by the Québec Superior Court (Commercial Division), which granted an initial court order that allowed the Company to stabilize its operations amid ongoing liquidity challenges. The initial order appointed Raymond Chabot Inc. as the monitor to oversee the proceedings and authorized debtor-in-possession financing by the National Bank of Canada. This financing is crucial for ELNA to continue its operations while addressing its financial difficulties. Following the court's approval, ELNA initiated a sale and investment solicitation process (SISP) to explore options for selling or attracting investment in all or part of its assets and business segments. The goal of this process is to maximize value for the Company and its stakeholders, which includes its healthcare professionals and patients. The SISP will be conducted under the supervision of the appointed monitor and aided by Raymond Chabot Grant Thornton & Co. LLP. Laurent Amram, the President and Founder of ELNA Medical Group, emphasized the importance of this restructuring decision. He stated that by pursuing protection under the CCAA, the Company aims to strengthen its financial stability and ensure uninterrupted healthcare services. ELNA is committed to enhancing access to quality care while delivering an exceptional experience for its physicians and patients. This strategic move represents the Company’s proactive approach to overcoming its current challenges and aims to facilitate long-term sustainable growth and innovation in the healthcare sector. Interested parties wishing to participate in the SISP must comply with specific terms and conditions set forth in the SISP Guidelines. A deadline for submitting non-binding letters of interest has been established for January 31, 2025. Comprehensive information regarding the CCAA proceedings can be found on the monitor's website, and ELNA’s legal advisors are from Osler, Hoskin & Harcourt LLP, who are guiding the Company through this challenging process.